On 8 May 2017, Mr. Klaus Iohannis, the Romanian president signed a law ratifying the Double Taxation Agreement (DTA) with China. Once ratified by China and becoming effective, the Agreement will replace the existing DTA of 1991 and effective as of 1 January 1993.
In the new treaty withholding tax rate on dividends and interest decreases from 10% to 3%, withholding tax rate on royalties decreases from 7% to 3%, specific provisions on commissions have been eliminated and an update of the provisions on exchange of information.
