What taxation of non-residents means
Non-resident individuals and companies earning income from Romania — dividends, interest, royalties, commissions or certain services — generally owe a withholding tax. The Romanian payer is required to withhold and remit it, under penalties for errors.
What we do for you
- Determine whether the income is taxable in Romania and at what rate;
- Apply the reduced treaty rate where a residence certificate exists;
- Compute, withhold and remit the tax on time;
- Prepare the informative return on tax withheld from non-residents (D207);
- Issue the certificates required by the foreign beneficiary.
Why it matters
Incorrect withholding creates problems for either the payer or the beneficiary. Correct treaty application reduces the tax, and complete documentation prevents double taxation and penalties.
Frequently asked questions
The standard rate depends on the income type but may be reduced by the double taxation treaty where a residence certificate exists.
The Romanian payer must withhold and remit the tax. We handle the calculation, withholding and reporting.
The informative return on tax withheld from non-residents, which we prepare and file for your company.