Romania has signed several double taxation agreements aimed primarily at avoiding double taxation of income, both in Romania and in any country that has signed a bilateral agreement with Romania, which means that these contracts govern the tax applied to the profits of a foreign company in Romania, as well as taxes on income collected by a Romanian legal entity in a foreign country. In Romanian law, the unilateral approach to the drafting of government decree No. 7 of 2001 on personal income tax is noticeable. These regulations constitute the common law defined by the concept of income obtained in Romania and abroad, as well as elements of convergence between national law and international conventions aimed at avoiding double taxation. Internal corrections include unilateral legislation that provides tax relief for a particular type of report or tax for certain categories of individuals or income. Do The Romanian immigration authorities provide local tax authorities with information on when a person enters or leaves Romania? Do the Romanian tax authorities follow the economic approach of employers in the interpretation of Article 15 of the Organisation for Economic Co-operation and Development (OECD) treaty? If not, are the Romanian tax authorities consider adopting this interpretation of the economic employer in the future? As far as social security is concerned, when social security contributions are due in Romania, it is compulsory for the employer to calculate, withhold and pay Romanian social security contributions. In this context, the non-Romanian employer must register for social security purposes. The individual may also assume responsibility for the registration and payment of Romanian social security contributions on the basis of an agreement with the employer. However, a non-Romanian person classified as a Romanian tax subject under Romanian law can only be subject to Romanian income tax if he is able to present a certificate of residence from a country or jurisdiction with which Romania has entered into a contract to avoid double taxation.
In this case, the person remains exempt from tax for the duration of validity indicated in the tax residence certificate. (a) Will the imposition be triggered regardless of whether or not the board member participates physically in board meetings in Romania? We can provide current and historical tax rates, comparison tables and country surveys through our specialized tax databases. We have current key summaries and detailed analysis of the tax system in countries around the world on corporate taxation, individual taxation, business and investment. From 2016, the onus is on the individual to declare and pay all social security contributions if the employer resides in a country/jurisdiction that is not covered by REGULATION EC 883/04 or with which Romania has not entered into a bilateral social security coordination agreement. How will a person be resident as a national resident for tax purposes? If you are a foreign entrepreneur running a business in Romania, you should be aware of the double taxation agreements that Romania has signed with other countries in order to avoid taxes in both countries. To do this, you need the advice of a Romanian accountant who can guide you through the process. For optimal results over time, you can work with our team of consultants to claim the benefits of double taxation agreements and skip all bureaucratic, legal and accounting actions. Romania has an extensive network of double taxation conventions that determine the circumstances in which non-Romanian persons are treated as residents of Romanian tax territory.