Income Tax in Romania on divideds

radolf

Member

Member since 24 March 2013

radolf

24 March 2013 20:19:26

radolf

24 March 2013 20:19:26

Does anybody here on the forum pays income tax in Romania?

Let's say I'm a European Union citizen (Austria) and own a foreign registered company (in UK) and pay myself a dividend from it - how much will I be charged in taxes?

Will it be the 16% flat tax or is there some special rate (e.g. Bulgaria has 10% flat tax on income but foreign soruced dividends are taxed at 5%)?

Insights highly appreciated...

Mark_W

Active member

Member since 29 February 2012

Bucharest

Mark_W

27 March 2013 09:26:32

Mark_W

27 March 2013 09:26:32

Bucharest

If you decide to pay yourself foreign dividend you may declare this income at the Romanian tax office. The tax rate is 16%.

As a general rule there would be no additional UK tax to pay, provided remittance of the dividend is made off-shore. If payment of the dividend is made to a UK destination (such as a UK bank account) then this would still be caught by general taxation law.

This is also subject to meeting the UK non-residence requirements.

radolf

Member

Member since 24 March 2013

radolf

27 March 2013 13:42:19

radolf

27 March 2013 13:42:19

Thanks Mark - this is highly useful info.

So I understand that according to your knowledge there isn't some special reduced tax rate for foreign sourced dividends in Romania (as there is in Bulgaria)?