Romania and Jersey signed TIEA
A tax information exchange agreement (TIEA) has signed between Romania and Jersey at the Romanian Embassy in London on December 1, 2014. The signing of the agreement will strengthen the relationship between Jersey and Romania. Both are members of
See MoreRomania: Prime Minister Confirms To Keep Flat Tax Regime
Prime Minister, Victor Ponta has reconfirmed that the country’s flat corporate and personal income tax rate of 16 percent will remain in place at least until the next government elections in 2016. Ponta gave the assurances at an awards ceremony
See MoreUruguay-Romania: Income and Capital Tax Treaty entered into force
The Income and Capital Tax Treaty between Romania and Uruguay has entered into force on 22 October 2014. The treaty for withholding tax usually applies from 1 January 2015, the treaty for criminal tax matters applies from 22 October 2014 and the
See MoreEuropean Commission warns Romania on taxation of foreign companies
The European Commission has formally asked Romania to stop the discriminatory tax treatment of foreign legal entities. According to Romanian present tax law, resident legal companies can deduct business expenses related to generating interest
See MoreRomania plans to cut VAT rate extension
The Romanian Government is planning to reduce Romanian VAT to all basic foodstuffs after the success of a trial on key supplies recently. At present VAT rate is 24%% on most foodstuffs. Bread was reduced from the standard Romanian 24% to 9%
See MoreRomania: Government Confirms Social Security Tax Reduction
The Government of Romania has approved a reduction in the social security tax paid by employers, in defiance of the IMF and despite a warning from the country's President that the move will put the country's economic stability at risk. Romania's
See MoreRomania: The Ministry of Finance published new tax provision
The Ministry of Finance published drafts proposal of the Tax Code and the Fiscal Procedures Code, on 30 June 2014. Under draft proposals currently under discussion the penalty for an under declaration of profits would be 10% of the additional amount
See MoreRomania: Under pressure on VAT recovery process
Romania has formally requested by the European Commission to improve its Value Added Tax (VAT) recovery process. The caused for opinion from the European Commission, the step before proceedings at the European Court of Justice, states that the
See MoreRomania plans to cut social security contributions
The Romanian Government is planning to cut social security tax paid by the employers by five percentage points though the plan has not been approved by the International Monetary Fund (IMF). Romania's Prime Minister, Victor Ponta, has confirmed this
See MoreRomania holds over progressive personal income tax rates
Due to several technical issues relating to tax submission and payments, the Romanian Government will not yet implement a progressive income tax regime for individuals, Romania's Finance Minister, Ioana Petrescu, has said. The current income tax in
See MoreRomania: Higher Taxes Expected From Oil and Gas Review
Recently the energy industry consulting firm Global Data issued a report according to which royalties on oil and gas in Romania are likely to increase by around ten percent on average from 2015. Windfall taxes on the industry are about to expire but
See MoreRomania Pursues Tax Debtors
Romania’s tax authority has commenced a pilot project aiming to ensure that medium sized businesses pay their tax arrears. Businesses are being contacted and given the options available for settling their liabilities. The intention is to
See MoreRomania’s Government approves tax exemption on reinvested profit
Under an emergency ordinance an exemption from tax on reinvested profits is to be put in place in July 2014 and remain until December 2015. The measure aims to increase the amount of company profits that are ploughed back into the business in the
See MoreRomania: Announces tax reforms
Romania is introducing a tax exemption on reinvested profit as part of an emergency ordinance. The tax exemption is to apply from 1 July 2014 and is to continue until the end of 2015. This is intended to encourage more investment in new assets in an
See MoreBulgaria’s Cabinet approves the signing of a new DTA with Romania
Bulgaria’s Cabinet has agreed to a proposal to amend the double taxation agreement (DTA) with Romania, to apply in place of the current DTA that was signed in 1994. The Cabinet has authorized the Finance Minister to negotiate the new DTA. This
See MoreRomania: New tax law to conform to EU rules
Romania has passed Law No 8/2014 to bring the tax low into line with EU provisions. The Law provides for new VAT place of supply rules for broadcasting, telecom and electronically supplied services that are similar to EU rules. The Law also reforms
See MoreRomania will not reduce VAT rate yet
Romania has announced that it cannot lower the current 24% VAT rate unless economic growth of more than 3 percent continues until 2015. Like some other EU countries, Romania raised its VAT rate on a temporary basis to deal with the consequences of
See MoreTreaty between India and Romania enters into force
The treaty between India and Romania which was signed on 8 March 2013 generally applies from 1 January 2014 for Romania and from 1 April 2014 for India. From this date, the new treaty generally replaces the India - Romania Income Tax Treaty in
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