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Romania

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Tax authorities

The Ministry of Public Finance
Strada Apolodor nr. 17, sector 5, Bucharest 050741
Tel: +40 21 3199759
Fax: +40 21 3122509
Email: presa.mfp@mfinante.gov.ro
Website: www.mfinante.ro

Tax rates at a glance

(As at July 29 2014 – ref. legislation applicable as of January 1 2015)

Corporate income tax rate 16%
Capital gains tax rate 16% (a)
Branch tax rate 16%
 
Withholding tax
Dividends 0%/16% (b)
Interest 0%/16% (c)
Royalties from patents and licences  0%/16% (c)
Branch remittance tax Nil
 
Net operating losses (years)
Carryback Not allowed
Carryforward 7 years (d)
  1. Capital gains obtained by corporate entities are included in their regular profits subject to corporate income tax at 16%; as of January 1 2014, capital gains obtained by resident legal entities from the disposal of Romanian entities or entities resident in a treaty-country are exempt from corporate income tax as long as two conditions are simultaneously observed, namely: there is a minimum holding of at least 10% of the share capital of the investee, held for a minimum uninterrupted one-year period at the time of the disposal; capital gains obtained by individuals are taxed at 16% as investment income irrespective of the holding period and type of securities traded.
  2. The 0% rate applies for payments qualifying under the conditions of the European Commission Parent-Subsidiary Directive for EU tax resident legal entities; 0% also applies to dividends paid under the agreement between the European Community and the Swiss Confederation to Swiss tax resident parent companies holding at least 25% of the share capital of the Romanian dividend payer for a minimum two-year period at the time of dividend payment; otherwise,16% applies to dividends paid to all other non-residents and resident legal entities or individuals (unless a more beneficial rate is applicable under a double tax treaty).
  3. The 0% rate applies starting January 1 2011 for payments qualifying under the European Commission Interest & Royalties Directive to beneficial owners being EU tax resident legal entities which are affiliated with the Romanian payer by a direct minimum holding of at least 25% maintained for two uninterrupted years at the time of payment (the exemption applies also in cases where both the Romanian payer and the EU-qualifying beneficial owner are held by a third company, which at the same time has a minimum direct holding of 25% both in the capital of the first company and that of the second company for at least two uninterrupted years at the time of payment); 0% also applies to payments made under the agreement between the European Community and the Swiss Confederation to Swiss tax resident companies qualifying under specified conditions.
    Note: the domestic law increases the withholding tax rate to 50% in case of inter-alia dividends, interest and royalties paid towards accounts in countries with which Romania does not have in place exchange of information mechanisms and if those payments are made within transactions qualified as 'artificial' under the Romanian tax legislation.
  4. The seven-year period applies starting with the loss related to fiscal year 2009 (losses incurred prior to 2009 can only be carried forward for five years).

Source: Taxhouse, Taxand Romania

Leading firms

The approach of the tax authorities to auditing has been described as "intense" by Vigi Radu, partner at Viboal Findex. "You have to advise clients in a certain way," he said.Tax collection rates in Romania have been low for a number of years and the ... [more]

Dan Badin is the partner in charge of Deloitte's tax and legal department. Overall, the department employs two partners and 79 other fee earners.The department's operations are organised into five service lines: corporate and international tax; indirect ... [more]

EY

Venkatesh Srinivasan leads the EY tax and legal department, which employs five partners and 110 other fee earners. The firm has four offices in Romania in Bucharest, Cluj-Napoca, Iasi and Timisoara.Srinivasan has led the practice since September 2002, ... [more]

The head of taxation at KPMG is Mark Gibbins. Other key names at the firm are senior tax partner Niculae Done and head of transfer pricing Teodora Alecu.The firm offers a comprehensive range of tax services including international and corporate taxation, ... [more]

PwC

PwC's tax department is led by Mihaela Mitroi, and with six partners and 170 other fee earners is the largest in Romania, both in terms of staff numbers and annual turnover.The firm offers a full suite of tax services including advice on corporate tax, ... [more]

The tax team at Baker Tilly Klitou & Partners is led by Nadia Oanea and consists of two partners and five other fee earners. Oanea, a senior tax manager, has more than 14 years of experience in tax, eight of which were spent as a state tax inspector, ... [more]

An electronics industry client said: "We are highly pleased with the quality of the services rendered, and with the promptness of the professional assistance."The tax advisory services department at Mazars is led by René Schöb and employs two partners ... [more]

Angela Rosca leads the tax department at Taxhouse, Taxand Romania, which consists of one additional partner and 18 other fee earners, about half of whom work in the department's largest technical area of indirect tax.Rosca has 19 years of experience ... [more]

Partner Ruxandra Jianu and founding partner Gabriel Biriş lead the tax department at Biriş Goran, which employs 10 practitioners.Jianu has strong knowledge in accounting, IFRS, US GAAP, estate planning and litigation. Biriş has more than 18 years' experience ... [more]

The tax department at DLA Piper is led by tax director Tudor Nedelea and consists of five fee earners. Nedelea has previously worked for PwC and, in a tax career spanning more than ten years, has built experience in both Romanian and international taxation ... [more]

Răzvan Graure leads Musat & Asociatii Tax Advisory, a tax consultancy affiliated with Musat & Asociatii law firm.The firm offers a broad range of taxation services, including corporate tax, property tax including incentives, special taxation regimes, ... [more]

The tax department at Nestor Nestor Diculescu Kingston Petersen (NNDKP) is led by its three partners, Alina Timofti, Marius Ionescu, and Ana-Maria Miron. The department employs 17 other fee earners in its two offices in Bucharest and Timisoara.NNDKP's ... [more]

The tax department at Popovici Nițu & Asoiciații Tax is led by partners Mihaela Pohaci and Alexandru Ambrozie. Their experience is supplemented by 12 other fee earners.The firm has a wide range of clients across multiple industries, including Auchan, ... [more]

Ţuca Zbârcea & Asociaţii Tax is an affiliate tax consultancy firm of law firm Ţuca Zbârcea & Asociaţii, and provides a full range of tax services. The firm is co-headed by three partners: Răzvan Gheorghiu-Testa, an attorney-at-law, and certified tax ... [more]

Delia Catarama leads the tax department at Viboal FindEx, a tax and transfer pricing boutique which employs three partners and seven other fee earners. The firm is the Romanian member of transfer pricing network Altus Alliance, an international network ... [more]

The taxation department at bpv Grigorescu Stefanica is led by partner Anca Grigorescu, and employs three partners and six other fee earners.The firm offers a combination of legal and tax services, and is strong in transactional tax advice and tax litigation. ... [more]

Luisiana Dobrinescu leads the tax practice at Dobrinescu Dobrew, which she set up with fellow partners Ionuţ Dobrinescu and Dumitru Dobrev in 2012.The firm offers tax advice on fiscal procedures, fiscal inspections, litigation, VAT, real estate, debt ... [more]

Niculeasa advises on a wide range of issues including direct and indirect tax, such as VAT, excise taxes and customs taxes. The firm is particularly strong in litigation, which has its own service line, and assists clients from tax inspections through ... [more]

Schoenherr Tax Bucharest's practice has grown in the last year, with three members of PwC's team joining the firm, including now-head of the tax department Theodor Artenie.The firm advises clients from all industries on Romanian tax law, and is especially ... [more]

Claudia Stanciu-Stănciulescu leads the tax department at TPA Horwath, which employs one other partner in Klaus Krammer.Stanciu-Stănciulescu joined the firm in 2006 and became a partner in 2010. As well as her value to TPA, she is a lecturer and author, ... [more]

Adrian Luca leads Transfer Pricing Services, an independent transfer pricing boutique which provides a range of transfer pricing services for its clients.

See also

Romania
Central and Eastern Europe

Firm contact details