The updated set of rules is included in the draft amendments to the Law on Accounting and Financial Reporting and has been submitted for public consultation, which will last until August 19, 2026. The draft provides for further alignment of national legislation with EU requirements.
In this regard, a number of general provisions of the law applicable to the preparation of financial statements and the determination of an entity’s category are being amended. For example, the term “revenue from sales” is clarified as “revenue from sales (net turnover).” This includes royalties, and the amount is determined after deducting discounts, VAT, and other taxes related to revenue from sales.
It is specified that an entity’s transition from one category to another takes effect starting with the third reporting period. It is also proposed to supplement the law with the principle of separate valuation of assets and liabilities, as well as a more detailed description of the principle of prudence.
Income Tax
The income tax return, which is currently included in the management report, has been moved to a separate chapter of the law. It must be filed by top-tier parent entities if their revenue exceeded 15.015 billion lei in each of two consecutive reporting periods, as well as by autonomous entities if they exceed this threshold.
The report must be submitted to the National Tax Administration and published free of charge on the entity’s website within one year.
A separate report on payments to government agencies is also required. This report will be prepared by large companies, as well as companies of public interest, engaged in the extractive industries or logging. It will include income tax, natural resource fees, royalties, dividends, infrastructure payments, license and concession fees, and others.
Information on an individual payment or a series of related payments may be omitted if their total amount does not exceed 1.7 million lei for the reporting period.
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