Eliminating Romanian withholding tax on       revenues of non-residents                                              Your ...
AGENDA1. Taxpayers of withholding tax in Romania2. Taxable incomes in Romania, subjects of the withholding tax3. Quota of ...
1.Taxpayers of withholding tax in Romania• Nonresidents obtaining taxable incomes from  Romania.                          ...
2. Taxable incomes in Romania, subjects of the               withholding tax    •   Dividendes    •   Interests    •   Roy...
3. Quota of the withholding tax                           5
4. Exemptions•   Incomes obtained by the non-resident persons for advisory    activities in Romania in free grant agreemen...
4. Exemptions•   Incomes from interests or royalties obtained by a resident legal    person of EU or European Free Trade A...
4. Exemptions• Dividens paid by a Romanian legal entity to a European Union or  European Free Trade Association resident l...
5. Conditions for applying the Double Taxation                     TreatiesRomania has concluded 86 Double Taxation Treati...
5. Conditions for applying the Double               Taxation Treaties• If the withholding tax already paid was higher than...
6. Certificates of attestation for paid withholding                  tax in Romania• The certificates of attestation for p...
7. Registration to the fiscal authorities of thecontracts concluded with the non-resident persons   • Contracts concluded ...
8. Incomes of a permanent establishment in                 Romania•   The foreign legal persons which performs activities ...
Our ProfileSmart advice,customisedfor you                          Your Single                           14               ...
Our Profile• A regional certified public accounting company  specialised in assurance services;• Headquarters and manageme...
Our Services• Audit & Assurance Services• Corporate & Personal Taxation• Business Advisory Services                       ...
Our Offices in the BalkansHeadquarters:Cypress Centre5 Chytron str., 4th floor,PC 1075PO BOX 24885,PC 1305Nicosia, CyprusT...
Q&A      18
Our ProfileThank you!                        Your Single               Professional Contact         19   in South East Eur...
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Webinar Slides Romania Withholding Tax

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  • Euroglobal S.E.E. Audit Ltd
  • Webinar Slides Romania Withholding Tax

    1. 1. Eliminating Romanian withholding tax on revenues of non-residents Your Single Professional Contact in South East Europe
    2. 2. AGENDA1. Taxpayers of withholding tax in Romania2. Taxable incomes in Romania, subjects of the withholding tax3. Quota of the witholding tax4. Exemptions5. Conditions for applying the Double Taxation Treaties6. Certificates of attestation for paid withholding tax in Romania7. Registration to the fiscal authorities of contracts concluded with the non-resident persons8. Incomes of a permanent establishment in Romania Your Single Professional Contact 2 in South East Europe
    3. 3. 1.Taxpayers of withholding tax in Romania• Nonresidents obtaining taxable incomes from Romania. 3
    4. 4. 2. Taxable incomes in Romania, subjects of the withholding tax • Dividendes • Interests • Royalties • Comissions • Incomes from management and advisory services in any area of activity • Incomes from other services rendered in Romania, exclusively international transport • Incomes from prizes from competitions organized in Romania • Incomes from gambling • Incomes realized by the nonresident persons from the liquidation of a Romanian legal person 4
    5. 5. 3. Quota of the withholding tax 5
    6. 6. 4. Exemptions• Incomes obtained by the non-resident persons for advisory activities in Romania in free grant agreements concluded by the Romanian Government / public authorities with other governments / public authorities or international organizations• Prizes obtained by a non resident person in Romania from sportive and cultural activities• Prizes obtained by students 6
    7. 7. 4. Exemptions• Incomes from interests or royalties obtained by a resident legal person of EU or European Free Trade Association are exempt if the beneficial of interest or royalties owns at least 25% of the value / number of shares in the Romanian legal person for an uninterrupted period of at least 2 years ending on the date of payment of interest or royalties• Interest and / or dividends paid to pension funds as defined in the legislation of the Member State of the European Union or in one of the European Free Trade Association Member. 7
    8. 8. 4. Exemptions• Dividens paid by a Romanian legal entity to a European Union or European Free Trade Association resident legal entity if there are respected cumulatively the following conditions: Non-resident:  It is a profit tax payer (or similar)  Owns at least 10% of the share capital of the Romanian legal person for a period of at least 2 years at the date of the dividend payment  Romanian payer:  It is a company incorporated under Romanian law (SRL, SA)  It is a profit tax payer 8
    9. 9. 5. Conditions for applying the Double Taxation TreatiesRomania has concluded 86 Double Taxation Treaties.• If a taxpayer is a resident of a country with which Romania has signed anagreement to avoid double taxation, the tax rate applicable to the taxableincome obtained from Romania cannot exceed the percentage settled by theTreaty.• If a taxpayer is resident of an EU state, for incomes obtained fromRomania it is applicable the more favorable tax rate between the RomanianTax Code, EU legislation an the Double Taxation Treaty.• For applying the Double Taxation Treaty, the non-resident taxpayershould present valid fiscal residence certificate 9
    10. 10. 5. Conditions for applying the Double Taxation Treaties• If the withholding tax already paid was higher than the percentage settled by Double Tax Treaty, respectively EU legislation, the amount paid in excess can be reimbursed, at the request of the taxpayer• The income payers must submit to the fiscal authorities a yearly return regarding withholding tax, nominating each non-resident obtaining incomes. 10
    11. 11. 6. Certificates of attestation for paid withholding tax in Romania• The certificates of attestation for paid withholding taxpaid by the non-resident persons are issued by theRomanian fiscal authorities, at the payers’ request.• Based upon this certificate, non-residents prove in theorigin country that the tax was paid for the incomesobtained in Romania in order to avoid double taxation 11
    12. 12. 7. Registration to the fiscal authorities of thecontracts concluded with the non-resident persons • Contracts concluded between a Romanian entity and non- residents (physical persons or legal entities) as suppliers for rendering services in Romania, must be registered at the fiscal authorities • A declaration containing details from contract, must be submitted within 30 days since the agreement. • Additionally, for amendments of clauses regarding amounts or dates in the contract, it must be submitted an update of initial declaration, within in 30 days. • The fines for not declaring within legal due date of 30 days are between 1.000-5.000 RON (250-1.050 EUR) 12
    13. 13. 8. Incomes of a permanent establishment in Romania• The foreign legal persons which performs activities through a permanent establishment in Romania have to pay profit tax (16%) on taxable income that is attributable to the permanent establishment.• For transactions performed between the foreign legal person and its permanent establishment, and between this one and any other affiliated person it should be prepared transfer pricing file 13
    14. 14. Our ProfileSmart advice,customisedfor you Your Single 14 Professional Contact in South East Europe
    15. 15. Our Profile• A regional certified public accounting company specialised in assurance services;• Headquarters and management in Cyprus;• Operates in South East Europe;• Independent member of BKR International.• Independent member of Lexbridge LLC 15
    16. 16. Our Services• Audit & Assurance Services• Corporate & Personal Taxation• Business Advisory Services 16
    17. 17. Our Offices in the BalkansHeadquarters:Cypress Centre5 Chytron str., 4th floor,PC 1075PO BOX 24885,PC 1305Nicosia, CyprusTel: +357 22 699 000Fax: +357 22 699 001www.euglobal.eu Your Single 17 Professional Contact in South East Europe
    18. 18. Q&A 18
    19. 19. Our ProfileThank you! Your Single Professional Contact 19 in South East Europe
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