Romanian Senate adopts AUR proposal to limit profit transfers

The Romanian Senate has adopted a legislative project, L481/2026, initiated by the Alliance for the Union of Romanians (AUR). The proposal aims to prevent companies from artificially reducing their taxable profits by transferring funds between entities within the same group.

The initiative introduces restrictions on financial costs and the deductibility of expenses related to management, consultancy, and assistance services, as well as the transfer of property rights between affiliated firms. Proponents of the bill, including Senators Daniela Ștefănescu and Niculina Stelea, argue the measure promotes fiscal equity and protects the national tax base by ensuring a more balanced treatment between independent taxpayers and large corporate groups.

If passed, the measures are intended to increase budget revenues from profit tax, which could potentially be used for infrastructure development and supporting Romanian entrepreneurs.