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The non residents who obtain incomes from their activities performed in Romania, either fromindependent activities or from dependent activities have the obligation to pay the income tax of16 % applied on the brute incomes taxable in Romania. The persons obliged to retain the taxowed by the non residents have also the obligation make the payment.Also, they have to submit a declaration the competent fiscal authority, by the 28th, respectively29th February of the following year for which the tax was paid.4. The income tax paid by the small and medium enterprises (SME)If a company fulfils the conditions established by the Romanian Fiscal Code in order to beconsidered as being a SME, the income tax applies to the incomes obtained from any source,with the exception of those foreseen by the Code aforementioned. According to the sameprovision, the tax quota for these incomes is 3%.The calculation and payment of the tax on the SME incomes is done each trimester, by the 25thincluded of the following month of the trimester for which the tax is calculated. The SMEs havethe obligation to submit, by the term of the tax payment, the declaration for the income tax.5. The tax paid by branches of foreign companies in RomaniaAny foreign legal person, having an authorized branch in Romania, has the obligation to pay anannual tax. According to the dispositions of the Fiscal Code, the branch tax for a fiscal year is theequivalent of 4.000 Euro, calculated at the exchange rate set by the National Bank of Romaniafor the payment day.The tax shall be paid in two equal rates, one due on June 25 and one due one December 25.Also, the foreign company is obliged to submit an annual declaration to the competent fiscalauthority, by February 28/29 of the taxable year.6. The VATThe standard quota of the value added tax, according to the Fiscal Code in force is of 24% andit applies on any taxable operation which is not exempted from the value added tax or which isnot submitted to a reduced quota.As regards the reduced quotas, in accordance with the applicable legal provisions, the quantumof these reductions may be of 9% or of 5%, and are applicable for special cases such as theservices consisting in permitting the access to castles, museums, memorial houses, historicalmonuments, architectural and archeological, zoos and botanic gardens, markets, exhibition andcultural events, cinemas, if they are not exempted; the delivery of school manuals, books,newspapers and magazines, with the exception of those meant exclusively or mainly forpublicity; the delivery of medicaments for human and veterinary use; housing in hotels andsimilar places, including the rental of camping spaces – for the quota of 9%; the delivery ofbuildings and the land on which these buildings are situated, as part of the social policy – for thequota of 5%.11