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Economy and Banking Sector of Romania

Withholding Tax

Withholding taxes are imposed at source of income and are often applied to dividends, interest, royalties, rent and similar payments. The rates of withholding tax are often reduced by double taxation agreements.

Withholding Tax Rates in Romania: 0.0 - 16.0%

Withholding tax rates applied on payments of interest and dividends in Romania are shown in Table 1.

Dividends Interest
Natural Persons (residents) 5.0 %0.0 %
Natural Persons (non-residents) 5.0 %16.0 %
Table 1. Withholding tax rates in Romania.

Double Taxation Agreements

Double Taxation Agreement (DTA) is an agreement between two or more countries for the avoidance of double taxation.

DTAs of Romania: 80 Signed Agreements

Romania signed DTAs which already came info force with the following jurisdictions:

AL Albania
DZ Algeria
AM Armenia
AU Australia
AT Austria
AZ Azerbaijan
BD Bangladesh
BY Belarus
BE Belgium
BA Bosnia and Herzegovina
BG Bulgaria
CA Canada
CN China
HR Croatia
CY Cyprus
CZ Czech Republic
DK Denmark
EC Ecuador
EG Egypt
EE Estonia
FI Finland
FR France
GE Georgia
DE Germany
GR Greece
HU Hungary
IS Iceland
IN India
ID Indonesia
IE Ireland
IL Israel
IT Italy
JP Japan
JO Jordan
KZ Kazakhstan
KP Korea, Democratic People's Republic of
KR Korea, Republic of
KW Kuwait
LV Latvia
LB Lebanon
LT Lithuania
LU Luxembourg
MK Macedonia
MY Malaysia
MT Malta
MX Mexico
MD Moldova, Republic of
ME Montenegro
MA Morocco
NA Namibia
NL Netherlands
NG Nigeria
NO Norway
PK Pakistan
PH Philippines
PL Poland
PT Portugal
QA Qatar
RU Russian Federation
SM San Marino
SA Saudi Arabia
RS Serbia
SG Singapore
SK Slovakia
SI Slovenia
ZA South Africa
ES Spain
LK Sri Lanka
SE Sweden
CH Switzerland
TH Thailand
TN Tunisia
TR Turkey
TM Turkmenistan
UA Ukraine
AE United Arab Emirates
GB United Kingdom
US United States
UZ Uzbekistan

There are also several agreements between Romania and other jurisdictions which were signed but haven't yet come into force:

UY Uruguay

Information Exchange

There are 3 ways for jusrisdictions to exchange information on tax matters:

  • spontaneously;
  • on request;
  • automatically.

Spontaneous exchange of information is provision of information that is forseeably relevant to another party without a request being previously sent.

Tax Information Exchange Agreements (TIEAs) enable exchange of information on request relating to a specific tax investigation, either criminal or civil.

Automatic information exchange allows jurisdictions to exchange information automatically, without having a specific tax investigation.

Exchange on Request: 1 Signed Agreements

Romania signed TIEAs which already came info force with the following jurisdictions :

GG Guernsey

Automatic Exchange: Starts in September 2017

Romania signed the automatic information exchange agreement on 29 October 2014 and committed to start the automatic information exchange in September 2017.

Automatic Excnange: 55 Bilateral Agreements to Receive Information

Romania has signed bilateral agreements with 55 jurisdictions to automatically receive information:

AD Andorra
AR Argentina
AU Australia
AT Austria
BE Belgium
BR Brazil
BG Bulgaria
CN China
CO Colombia
HR Croatia
CY Cyprus
CZ Czech Republic
DK Denmark
EE Estonia
FO Faroe Islands
FI Finland
FR France
DE Germany
GI Gibraltar
GR Greece
GL Greenland
GG Guernsey
HU Hungary
IS Iceland
IN India
IE Ireland
IM Isle of Man
IT Italy
JP Japan
JE Jersey
KR Korea, Republic of
LV Latvia
LI Liechtenstein
LT Lithuania
LU Luxembourg
MY Malaysia
MT Malta
MU Mauritius
MX Mexico
MC Monaco
NL Netherlands
NZ New Zealand
NO Norway
PL Poland
PT Portugal
SM San Marino
SC Seychelles
SK Slovakia
SI Slovenia
ZA South Africa
ES Spain
SE Sweden
CH Switzerland
GB United Kingdom
UY Uruguay

Automatic Excnange: 33 Bilateral Agreements to Send Information

Romania has signed bilateral agreements with 33 jurisdictions to automatically send information:

AD Andorra
AT Austria
BE Belgium
BG Bulgaria
HR Croatia
CY Cyprus
CZ Czech Republic
DK Denmark
EE Estonia
FI Finland
FR France
DE Germany
GI Gibraltar
GR Greece
HU Hungary
IE Ireland
IT Italy
LV Latvia
LI Liechtenstein
LT Lithuania
LU Luxembourg
MT Malta
MC Monaco
NL Netherlands
PL Poland
PT Portugal
SM San Marino
SK Slovakia
SI Slovenia
ES Spain
SE Sweden
CH Switzerland
GB United Kingdom

Further Information

FATCA

Foreign Account Tax Compliance Act (FATCA) which became law in the United States in March 2010, focuses on reporting made by foreign financial institutions about financial accounts held by US taxpayers or foreign entities in which US taxpayers hold a substantial ownership interest. The FATCA-reporting is facilitated by Intergovernmental Agreements (IGAs).

FATCA Status in Romania
IGA in effect since 28 May 2015, Model 1

Romania has FATCA agreement with the U.S. in effect since 28 May 2015 (Intergovernmental Agreement Model 1). Financial institutions operating in Romania are required to identify U.S. taxpayers by January 1, 2017 and to report the information for 2017 and the subsequent years. The agreement is reciprocal: Romanian financial accounts hold in U.S. financial institutions will be reported to Romanian authorities.

Further Information