What double taxation is
Double taxation occurs when the same income is taxed in two states — for example, dividends paid by a Romanian company to a German shareholder, or a posted employee’s salary. Romania has double taxation treaties with over 90 states, including Germany and Austria, setting out which state may tax and how the credit is granted.
What we do for you
- Analyse the specific situation and identify the applicable treaty;
- Obtain the required tax residence certificate;
- Apply the reduced rate set by the treaty (e.g. on dividends, interest, royalties);
- Prepare the documentation for the tax credit or exemption;
- File returns in Romania and prepare documents for the foreign tax authority.
Why correct application matters
Without the residence certificate and correct documentation, the higher standard rate applies. Correct application can significantly reduce withholding tax.
Frequently asked questions
By applying the double taxation treaty: we obtain the residence certificate, apply the reduced rate and document the tax credit.
Usually yes. It proves your tax residence and allows the reduced treaty rate. We help you obtain it.
Yes. Treaties set reduced rates for dividends, interest and royalties paid between the two states.