Romania Guide

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Infomation

  • Country:Romania
  • Date:June 2019
  • Tags:tax, general informations

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Romania Guide

At a glance

Corporate Income Tax Rate (%) 1-16 (a)

Capital Gains Tax Rate (%) 16 (a)

Branch Tax Rate (%) 16 (a)

Withholding Tax (%) (b)

Dividends 5 (c)

Interest 16 (d)(e)(f)

Royalties 16 (d)(f)

Commissions 16 (d)

Certain Services Rendered Abroad 16 (g)

Services Rendered in Romania 16 (d)

Gambling 1

Branch Remittance Tax 0

Net Operating Losses (Years)

Carryback 0

Carryforward 7 (h)

(a) See Section B.

(b) These withholding tax rates are standard and final. They can be reduced under double tax treaties or European Union (EU) directives.

(c) This tax may be reduced to nil for dividends paid to a legal entity residing in another EU member state or to a permanent establishment of an entity residing in an EU member state, if certain conditions relating to the dividend recipient and dividend payer are satisfied. These conditions are described in Dividends in Section B. Dividends paid by Romanian legal entities to pension funds resident in an EU member state, as defined by the law of such state, are exempt from withholding tax in Romania.

(d) This withholding tax applies only if the income is not attributable to a permanent establishment in Romania.

(e) The following types of interest derived by nonresidents are not subject to withholding tax:

• Interest from public debt instruments in national and foreign currency

• Interest related to instruments issued by the National Bank of Romania to carry out monetary policy

• Interest paid by Romanian legal entities to pension funds resident in an EU member state, as defined by the law of such state

(f) The withholding tax rate is 0% for interest and royalties if certain conditions are satisfied, including the following principal conditions:

• The beneficial owner of the interest or royalties is a legal person resident in an EU member state or a permanent establishment of an entity resident in such a state.

• The beneficial owner of the interest or royalties holds at least 25% of the value or number of participation titles in the Romanian entity for an uninterrupted period of at least two years that ends on the date of payment of the interest or royalties.

(g) This withholding tax applies only to management and consultancy services rendered abroad. International transport and supplies of services ancillary to such transport are not subject to withholding tax.

(h) Annual tax losses may be carried forward for seven years and are not adjusted for inflation.

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