New Taxes on the Banking and Energy Sectors in Romania

January 21, 2019

The Romanian Government has published in the Official Journal of Romania no. 1116 from 29 December 2018, the Governmental Emergency Ordinance 114/2018 which will take effect from 2019 and regulates new taxes and charges for the Banking and Energy Sectors.
A new banking assets tax has been established by the Romanian Government. It is payable quarterly, and determined by applying certain progressive rates to the balance of the existing financial assets at the end of each quarter of the year. The tax rates vary between 0.1% and 0.5% and are dependent upon the value of the Romanian Interbank Offer Rate (ROBOR) quarterly average. Moreover, such tax rates apply progressively provided that the quarterly ROBOR average is above the threshold of 2%.
Regarding the energy sector, a 2% turnover tax has been introduced for companies in the energy sector, which hold licenses granted by the national energy regulator, the National Regulatory Authority for Energy (“ANRE”). The payment of the turnover tax will be collected by ANRE from all license holders in the electricity, electricity and heat in cogeneration and natural gas sectors.