Withholding tax on dividends in Romania

[European]

Hi all,
Romania has a withholding tax rate of 8% on dividends disbursed by a Romanian legal entity to non-(tax)resident individuals.
If the individual is a ta resident in the EU (not in Romania), can this 8% be claimed back from Romania?
Thanks

 

[TheCryptoAnt]

Hi all,
Romania has a withholding tax rate of 8% on dividends disbursed by a Romanian legal entity to non-(tax)resident individuals.
If the individual is a ta resident in the EU (not in Romania), can this 8% be claimed back from Romania?
Thanks

Romania - Corporate - Withholding taxes

Detailed description of corporate withholding taxes in Romania

taxsummaries.pwc.com

 

[European]

Thanks @TheCryptoAnt
I see that for Greece the rate under the treaty for dividends is 45%. Is that a typo? It's much lower for all other countries

 

[Roo]

@European in Romania you will probably get back nothing but tax credit from ANAF and I don't think they will allow you to claim back the 8%, then after dividends you will most probably be forced to pay healthcare and social security on your dividend income if it's above a minimum income threshold which is very low (unless laws changed recently). You can pay those at the minimum level ifI remember correctly but they still mean a few thousand euros per year.

 

[TheCryptoAnt]

Thanks @TheCryptoAnt
I see that for Greece the rate under the treaty for dividends is 45%. Is that a typo? It's much lower for all other countries

I doubt PWC has a typo in their website, but you can google the agreement itself and check.

 

[Marzio]

Is that a typo?

Not a typo

 

[European]

Not a typo

It's 20% then, not 45%
The PWC webpage talks about distributions by and WHT tax applied to Romanian resident companies (to non-resident entities)

 

[Marzio]

You should always cross check what PwC says with Deloitte's treaty tool.

I find it to be more precise for the available jurisdictions.

 

[European]

You should always cross check what PwC says with Deloitte's treaty tool.

I find it to be more precise for the available jurisdictions.

Yeah, it's 20% according to that tool

 

[Marzio]

Yeah, it's 20% according to that tool

I know, that's where the screenshot i posted here is coming from

 

[European]

I know, that's where the screenshot i posted here is coming from

So it is a typo then, in the initial PWC website

 

[JohnLocke]

It's 20% then, not 45%
The PWC webpage talks about distributions by and WHT tax applied to Romanian resident companies (to non-resident entities)

Maybe you should post the link to the PWC page, just to be fair.

 

[European]

Maybe you should post the link to the PWC page, just to be fair.

@TheCryptoAnt posted it at the beginning of the thread . Here it is again

Romania - Corporate - Withholding taxes

Detailed description of corporate withholding taxes in Romania

taxsummaries.pwc.com