Thursday, 17 September 2026
Romania has revised the procedure through which companies can obtain an advance decision from the tax authorities on how a planned transaction will be treated, introducing a more flexible framework that could be relevant for property investors, developers and international groups carrying out complex transactions in the country.
The changes were introduced through Ministry of Finance Order no. 1,128/2026, signed on 26 August and effective from 7 September 2026 following publication in the Official Gazette. The order replaces the procedure introduced in 2023 and applies to applications submitted after the new rules entered into force. Applications filed earlier continue under the previous framework.
One of the main changes concerns when companies can approach the authorities. Previously, an application generally had to be submitted at least 90 days before the planned transaction. Under the new system, companies can seek a decision before a transaction begins or while it is being implemented, provided the relevant event has not already generated tax consequences.
The change could be significant for investment transactions that develop over several stages. Property acquisitions, corporate restructurings, development arrangements and cross-border investment structures can involve tax questions that emerge as negotiations and implementation progress. Companies may now have greater scope to seek the authorities’ position without having to make the application as far in advance as under the previous system.
The reform also broadens the range of matters that can potentially be considered. The previous framework referred primarily to taxes and other obligations governed by Romania’s Tax Code, while the new order refers more broadly to obligations falling within Romanian tax legislation. PwC identifies this expanded scope as one of the principal differences introduced by the new procedure.
Access to the process has also been widened. Applications and supporting documents can be submitted through several channels, including email, post, the Ministry of Finance registry and Romania’s electronic taxpayer platform. Supporting documentation must be prepared in Romanian, with the required documentation accompanying the application.
Another potentially important change is the simplification of the circumstances under which applications may be rejected. A comparison of the old and new procedures indicates that the number of stated rejection grounds has fallen from 26 to seven. Remaining obstacles include cases where a transaction lacks an economic purpose, the tax consequences have already occurred, required information has not been supplied or relevant proceedings concerning the transaction are already underway.
The authorities also carry out an initial assessment before moving to the substantive examination. Deloitte notes that applicants are informed about the outcome of this preliminary stage within 30 days, while requests for additional information during the subsequent examination can suspend the timetable for reaching a decision.
The revised system nevertheless has important limitations. A decision obtained under the procedure applies only to the taxpayer that requested it and according to the circumstances disclosed in the application. Other companies cannot rely on the same decision even where their circumstances appear similar. This is particularly relevant to real estate groups using multiple special-purpose companies, as a decision obtained by one entity should not be assumed to cover other companies within the same structure.
Professional analysis also points out that this represents a tightening in one respect. Under the previous framework, the effects could extend to entities identified in the decision, whereas the new wording restricts them to the applicant. This may require groups undertaking transactions through several companies to consider separate applications.
The application is also subject to a fee. The statutory charge remains €5,000 for large taxpayers and non-residents and €3,000 for other taxpayers. The new procedure provides for payment in connection with each principal tax obligation covered by an application.
For Romania’s property market, the significance of the reform lies primarily in transaction planning rather than in changing tax rates themselves. Large acquisitions, development structures and international investments frequently involve questions over VAT, corporate taxation and the treatment of individual transactions. Providing companies with greater flexibility over when they can seek an official position could make the mechanism more practical during the preparation and execution of complex deals.
The changes do not, however, guarantee a particular tax outcome or eliminate transaction risk. The authorities can request further information, applications remain subject to eligibility requirements and the resulting decision is tied to the circumstances presented by the individual applicant. Deloitte similarly stresses that the decision applies exclusively to the requesting taxpayer and cannot automatically be transferred to comparable cases.
The reform therefore represents a procedural change rather than a relaxation of Romania’s underlying tax rules. For real estate investors and developers, its practical importance will depend on whether the more flexible application process makes advance tax decisions a more usable tool when structuring acquisitions, developments and other major transactions.
Source: Deloitte
