{"id":9929,"date":"2016-11-04T15:05:56","date_gmt":"2016-11-04T12:05:56","guid":{"rendered":"https:\/\/www.kreston.ro\/2020\/06\/04\/rules-for-taxation-paid-by-romanian-companies-to-companies-outside-eu\/"},"modified":"2020-06-04T17:21:41","modified_gmt":"2020-06-04T14:21:41","slug":"rules-for-taxation-paid-by-romanian-companies-to-companies-outside-eu","status":"publish","type":"post","link":"https:\/\/www.kreston.ro\/en\/2016\/11\/04\/rules-for-taxation-paid-by-romanian-companies-to-companies-outside-eu\/","title":{"rendered":"Rules for taxation paid by Romanian companies to companies outside EU"},"content":{"rendered":"<div class=\"wpb-content-wrapper\"><p>[vc_row][vc_column][vc_column_text]As EU member Romania applies the regulations regarding the dividend tax exemption for dividends paid to a shareholder registered in EU, provided that this EU located company owns at least 10% of the shares during at least 1 year without any interruption, it has a specific legal form and it is registered as a profit tax payer. In order to apply the exemption, the shareholder must provide the fiscal residence certificate and the statement of the beneficial owner of the dividends.<\/p>\n<p>If the above mentioned conditions are not filled, the double taxation treaty is applicable, if such treaty exists and the beneficiary of dividends provides the fiscal residence certificate.<\/p>\n<p>If the fiscal residence certificate is not provided, the local law is applicable (articles 221-224 of the Fiscal Code) and the income payer (the Romanian company) will withhold, pay and declare a 5% tax calculated on the gross amount.<\/p>\n<p>The deadline for dividend tax is the 25<sup>th<\/sup> of the month following the one that the income is paid. However, the tax is due if the dividends are recorded but not paid before the end of the year and the deadline is January 25<sup>th <\/sup>if the following year. In such case we advice the above mentioned documents to be provided before the end of the year regardless if the dividend we paid or not.<\/p>\n<p>Polish companies must be payer of <em>\u201ctodatek dochodowy od osob prawnych\u201d<\/em> and the legal form must be <em>\u2018\u2019spolka akcyjna&#8217;\u2019<\/em> or <em>\u2018\u2019spolka z ograniczona odpowiedzialnoscia\u2019&#8217;<\/em>;<\/p>\n<p>If the conditions are not filled and the Double taxation treaty will be applied, the agreement between Romania and Poland provides a withholding tax on dividends of 5% if the Polish company holds at least 25% of the shares of the Romanian company.[\/vc_column_text][\/vc_column][\/vc_row]<\/p>\n<\/div>","protected":false},"excerpt":{"rendered":"<p>[vc_row][vc_column][vc_column_text]As EU member Romania applies the regulations regarding the dividend tax exemption for dividends paid to a shareholder registered in EU, provided that this EU located company owns at least 10% of the shares during at least 1 year without any interruption, it has a specific legal form and it is registered as a profit [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":14902,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[264],"tags":[],"class_list":["post-9929","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-case-study"],"featured_image_src":{"landsacpe":["https:\/\/www.kreston.ro\/wp-content\/uploads\/2013\/03\/kreston_romania_news_cover-1140x445.png",1140,445,true],"list":["https:\/\/www.kreston.ro\/wp-content\/uploads\/2013\/03\/kreston_romania_news_cover-463x348.png",463,348,true],"medium":["https:\/\/www.kreston.ro\/wp-content\/uploads\/2013\/03\/kreston_romania_news_cover-300x169.png",300,169,true],"full":["https:\/\/www.kreston.ro\/wp-content\/uploads\/2013\/03\/kreston_romania_news_cover.png",1500,845,false]},"yoast_head":"<!-- This site is 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