Romania

Romania: DTA with Uzbekistan signed

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The president of Romania signed a law ratifying the amending protocol of Double Taxation Agreement (DTA) with Uzbekistan on 8 May 2017.

Italy: Draft law ratifying DTA with Romania approved

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The Senate of Italy approved the draft law ratifying the Double Taxation Agreement (DTA) with Romania on 4 May 2017. Once in force and effective, the treaty will replace the existing DTA of 1977.

Romania ratifies DTA with China

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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.

Romania approves DTA with China

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On 10 April 2017, the Senate of Romania approved the Double Taxation Agreement (DTA) with China for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income.

Romania-Parliament approves participation as BEPS associate

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The government of Romania approved the country’s participation as a BEPS associate on 2 March 2017. As an associate Romania will work with OECD and G20 members to develop standards and monitor the implementation of the BEPS package. Romania has committed to implement the four BEPS minimum standards: Action 5 (exchange of tax ruling information), Action 6 (preventing treaty abuse), Action 13 (country-by-country (CbC) reporting), and Action 14 (mutual agreement procedure (MAP)).

Romania: VAT registration procedure updated

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The Romanian tax authority published Order no. 605, a new VAT registration procedure in the official gazette on 1 February 2017.

From 1 February 2017, businesses are no longer required to submit the Form 088, which is a declaration of intention to make taxable transactions in the country. According to Order 605, the application of VAT registration will not be rejected immediately by the tax authorities; in fact the taxpayers will now be able to dispute the decision within 45 days from the date that it was communicated to the taxpayer.

Other criteria for the VAT registration procedure are kept unchanged and the new rule applies from 1 February 2017.

Hong Kong-Romania tax treaty entered into force

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The Income Tax Treaty (2015) between Hong Kong and Romania has been entered into force on 21 November 2016.  The agreement was signed  in November 18, 2015.

The agreement generally applies from 1 January 2017.