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Withholding Tax for Income Derived from Dividends Stands at 16%

Romania

There have been a number of amendments made to the tax legislation in Romania such as general provisions to the fiscal code, confirmation that 2010 will comprise of two tax years including those for tax loss recovery and changes to VAT. Taxand Romania presents a summary of the latest amendments to tax law affecting both entities and individuals.

Taxand's Take


One amendment with particular interest is regarding withholding tax on income derived in Romania by non-resident entities. The amendment states that the standard tax rate applicable for income from dividends obtained in Romania (including those legal entities resident in other EU member states or in one of the European Association for Free Exchange's states and if no double tax treaty or EU directive is applied) is 16%. Companies with subsidiaries in Romania should be aware of this tax when obtaining income from dividends.

Your Taxand contact for further queries is:
Angela Rosca
T. +40 2 1316 0645
E. angela.rosca@taxhouse.ro

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Taxand's Take Author