Income Tax in Romania on divideds

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radolf Member

Member since 24 March 2013

radolfMember24 March 2013 18:19:26

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

Mark_WActive member27 March 2013 07:26:32

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

radolfMember27 March 2013 11:42:19

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)?

MikeKulhanek Member

Member since 14 April 2013

MikeKulhanekMember14 April 2013 16:42:37

Is this the same as a pension income from the USA? It that taxed in Romania if you are living there as a resident?

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