BANCA TRANSILVANIA S.A. Romanian joint-stock company ...

Non-resident investorsNon-resident natural personsTax on gains from the transfer of Bonds. According to Art. 115 (2) and Art. 66 (5), as well asArt. 67 (3) of the Fiscal Code, the gain from the transfer of Bonds shall be determinedannually and it is imposed with a 16% rate.Tax on interest. According to Art. 116 (2) d) of the Fiscal Code, the tax on interest on Bondspaid by non-resident natural persons is 16%. This tax is withheld by the interest payer (Bank).Non-resident legal personsTax on gains from the transfer of Bonds. Gains from the transfer of Bonds obtained by nonresidentlegal entities are not subject to taxation in Romania, with the exception when the nonresidentlegal person has a permanent establishment in Romania. The obligation to calculate,declare and pay the tax until the 25 th of the month following each quarter is that of theBondholder.Tax on interest. According to Art. 116 (2) d) of the Fiscal Code, the tax on interest on Bondspaid by non-resident legal persons is of 16%. This tax is withheld by the payer of the interest(Bank).Convention on the avoidance of double taxationAccording to Art. 118 of the Fiscal Code, in the case of non-residents from countries whichhave signed a double taxation convention with Romania, the taxes paid by such non-residentperson cannot exceed the taxes imposed by the convention for the avoidance of doubletaxation. If the tax rates established by the laws of Romania are more favourable than thoseprovided by the convention, the more favourable tax rates shall be applied. For the applicationof the convention, the non-resident legal person is obliged to submit the certificate of fiscalresidence issued by the competent authority of its state of residence to the income payer at thetime of the income.Specific provisions related to International Finance CorporationAccording to Article VI, Section 9, Par. (a) of the IFC Articles of Agreement (the “Articles ofAgreement”) which were implemented into the Romanian legislation by Law no. 28/1991, asamended, “IFC, its assets, property, income and its operations and transactions authorized bythe Articles of Agreement, shall be immune from all taxation and from all customs duties. IFCshall also be immune from liability for the collection or payment of any tax or duty”. Thus,IFC is exempted from paying tax in Romania, in accordance with the above mentionedprovisions of the Articles of Agreement (including tax on interest on Bonds).Specific provisions related to the EBRD110