Withholding tax on dividends in Romania
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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 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
@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.
I doubt PWC has a typo in their website, but you can google the agreement itself and check.
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)
You should always cross check what PwC says with Deloitte's treaty tool.
I find it to be more precise for the available jurisdictions.
I find it to be more precise for the available jurisdictions.
Maybe you should post the link to the PWC page, just to be fair.
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@TheCryptoAnt posted it at the beginning of the thread . Here it is again
https://taxsummaries.pwc.com/romania/corporate/withholding-taxes
That's correct but you will have to create substance in Romania AKA hiring at least a director and renting an office to prevent the EU country where you are tax resident to claim that you are managing the RO company from there.
Since you mentioned Greece in your post, Greece could be a good option for an holding (if your RO company doesn't generate > 30% in passive income otherwise it will be considered a CFC) because there will not be any WHT tax in Romania and dividends are taxed only 5% in Greece when distributed to yourself.
Total tax 8%
Not bad at all.
Yes on total turn over, not on profit. Profit tax is 16%. also after a given sum you will also have to pay VAT, add 19% more.
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