The following changes on the corporate income tax are introduced starting from 01.01.2024:

Tax losses

⮚ The annual tax loss realized starting with 2024/ amended tax year starting in 2024, is recovered up to 70% of the taxable profit obtained in the next 5 consecutive years, in the order of registration of the fiscal year, at each profit tax payment term.

⮚ Annual tax losses related to the years before 2024, remaining to be recovered on 31 December 2023, will be recovered within a limit of 70% of the related taxable profits, during the remaining period of recovery from the 7 additional consecutive years to the year of recording the respective losses.

⮚ For the application of the 70% limit, the annual tax losses recorded in the years preceding 2024, remaining uncompensated on December 31, 2023, are cumulated with the annual tax losses recorded starting from 2024.

Limitation of deductibility of interest and other costs economically equivalent to interest

⮚ A new limitation of the deductible threshold of EUR 500,000 is introduced for the exceeding borrowing costs related to the transactions/operations with related parties that do not finance the acquisition/production of certain assets in progress. This threshold is not applicable to credit institutions.

⮚ The taxpayer has the right to deduct in one fiscal period the exceeding borrowing costs up to the threshold represented by the RON equivalent of EUR 1,000,000.

Social Expenses

⮚ The amounts paid by taxpayers for placing their employees’ children in early education units will be considered social expenses, with a limit of no more than RON 1,500 /month, for each child, under certain conditions. This expense does not represent a tax on profit deduction, but a social expense borne by the employer and within a limited deductibility of up to 5% of the salaries fund.

⮚ Nurseries and kindergarten-related expenses are introduced under the operating expenses of the units administered by taxpayers, which are deductible within the limits provided by the Fiscal code.

Sponsorship/Private scholarships

⮚ Private scholarships are removed from the category of sponsorships and are no longer eligible for tax credit. To determine the fiscal result, taxpayers who incur expenses related to private scholarships, are going to sum up these expenses within the limit of RON 1,500 / for each scholarship granted, with social expenses, and the resulting amount will be deducted within the limit of 5%, applied to the value of expenses with staff salaries.

⮚ The terms of the possibility of redirecting the CIT, for the performance of sponsorships and/or acts of patronage or the awarding of private scholarships, changed from 6 months as it is currently permitted until the submission of the annual CIT. 


⮚ The limit for bad debt provisions is reduced from 50% to 30%. The GEO 115 clarifies that the limit of 30% is applied to adjustments for impairment of receivables representing amounts owed by internal and external customers for products, semi-finished products, materials, goods sold, works performed, and services rendered, for receivables incurred starting with 1 January 2024.

Other amendments

⮚ It is allowed for taxpayers in the same fiscal period to reduce their profit tax through the reinvested profit procedure and with the value of the cash registers purchased in that fiscal period.

⮚ If a repair, or maintenance is carried out, or expenses related to a headquarters of a profit taxpayer are settled, and it is in a home owned by a natural person, the expense is deductible limited to the percentage of 50%. If a registered office in the taxpayer’s patrimony is used for personal purposes by associates or shareholders, the expense of that office is fully non-deductible. This 50% limitation also applies to depreciation.