Flash News – February 2026
The 1% limitation on the deductibility of expenses related to intellectual property rights, management services, and consultancy services has been repealed.
We remind you that Law 239/2025 (known as the “Second Fiscal Measures Package”) introduced a limitation on the deductibility of expenses related to intellectual property rights, management and consultancy expenses incurred in relation to affiliated entities that are not established or incorporated in Romania and do not have their place of effective management in Romania. The limitation provided for the deduction of the above-mentioned expenses up to a ceiling of 1% of the total recorded expenses, based on the analysis of the 2024 expenses criterion, with applicability as of 1 January 2026.
Thus, GO 6/2026 repeals Article 251 of the Fiscal Code and stipulates that, for corporate income tax payers, the expenses that fell under the scope of Article 251 of the Fiscal Code shall follow the deductibility regime provided under Article 25 (general rules) of the Fiscal Code for determining the fiscal result starting with the first quarter of 2026, respectively for determining the fiscal result for the year 2026 for taxpayers applying the annual corporate income tax reporting and payment system.