Dividend Tax: What's changing in 2026 and what you need to know in 2025

Dividend Tax: What's changing in 2026 and what you need to know in 2025

Distributing dividends is one of the most efficient ways for entrepreneurs to benefit from the profits generated by their companies. However, starting in 2026, the tax regime applicable to these earnings will change significantly. Here's what you need to know to make informed decisions.

2025: The last year with a low tax rate

In 2025, dividend tax is 10%, applied to the gross amount distributed. This is withheld at the source by the company and transferred to the state budget by the 25th of the month following the dividend payment.

In addition to the tax, a CASS (health contribution) of 10% also applies, but only if net dividend income exceeds 24,300 lei annually (equivalent to 6 minimum wages in the economy), as follows:

• If the income received is below 24,300 lei, no CASS is owed.
• If the income is between 24,300 lei and 48,600 lei, CASS is owed in the amount of 10% of 24,300 lei, which is 2,430 lei.
• If the income is between 48,600 lei and 97,200 lei, CASS is owed in the amount of 10% of 48,600 lei, which is 4,860 lei.
• If the income exceeds 97,200 lei, CASS is owed in the amount of 10% of 97,200 lei, which is 9,720 lei.

2026: The return to the 16% rate

Starting on **January 1, 2026**, the dividend tax will be increased to 16%, according to Law no. 141/2025. This rate will apply regardless of the year in which the profit was generated, as long as the distribution takes place in 2026 or later.

This measure marks **the end** of a 10-year period during which dividends benefited from a favorable tax regime. Romania is thus returning to the 2015 tax level in an effort to reduce the budget deficit.

Comparison: 2025 vs. 2026

Net Impact: For the same gross dividend amount, in 2026 you will pay 60% more tax than in 2025. For example, for 100,000 lei gross, you'll pay 6,000 lei more if you postpone the distribution until 2026.

What you can do by the end of 2025

If you have undistributed profit, distributing the dividends by December 31, 2025 allows you to benefit from the current 10% rate. You can opt for:

• Annual dividends – after the financial statements are approved.
• Interim dividends – with an interim balance sheet filed with ANAF.

Conclusion

The increase in dividend tax in 2026 will directly affect the profitability of profit distributions. Our recommendation is to carefully analyze your company's financial situation and consult with an accounting expert to decide if it is opportune to distribute dividends in 2025.