Doing Business with Romania - Über die Osec

longer required for certain capital transfers (i.e. operations with securities and other instruments
in the monetary market) from 1 st September 2006.
� Regime applicable to non-residents
In accordance with Regulation (EC) no. 1889/2005 of the European Parliament and of the Council
any natural person entering or leaving the Community and carrying cash amounting to EUR 10 000 or
more shall declare that sum to the competent authorities of the Member Stare through which he is
entering/leaving the Community.
Since the currency market is completely liberalized, “non-residents have the right to acquire, hold and
use financial assets expressed in foreign currency and in domestic currency (RON)”.
Non-residents may open foreign-currency accounts in Romanian banks or foreign banks authorised
to operate in Romania and repatriate and transfer their financial assets.
� Safeguard measures
Due to liberalization, the capital account transactions are subject to the following principles:
a) Inflows before outflows,
b) Medium and long term flows before short term flows,
c) Direct investment before portfolio investment,
d) Respecting the sequence banks - companies - households.
The Romanian National Bank can take safeguard measures related to monetary capital operations
according to Regulation no. 4/2005, such as:
- Compelling residents and non-residents to notify the National Bank of Romania, 10 days earlier,
of their intention to perform short-term capital transactions;
- Charging a commission fee at the initiation of interbank exchange market transactions concerning
the selling/buying of foreign currency;
- Raising the mandatory reserve ratio for the amounts representing short-term capital inflows;
- Imposing other restrictions or taking supplementary measures for monitoring capital transactions.
The period of application of the safeguard measures shall not exceed six months.
� Main regulations
o BNR Regulation no. 4/2005 regarding currency operations, with the subsequent modifications
(“Currency Regulation”) as subsequently amended;
o BNR Norms no. 17/2002 regarding the statistical reporting to BNR of long and medium term
currency capital operations of the long and middle term private external debt type, with the
subsequent modifications;
o EC Regulation no. 1889/2005 of the European Parliament and of the Council, on control of cash
entering or leaving the Community.
Capital movement & profit transfer – See
o www.bnr.ro – The National Bank of Romania
o www.aris-invest.ro – Romanian Agency for Foreign Investment
2.4. Fiscal affairs
As a rule, once an entity begins to carry out business subject to taxation in Romania, as per the legal
provisions currently in force, it will have to pay taxes starting with that precise moment.
� LEGAL ENTITIES
PROFITS TAX
Are subject to profits tax:
o Romanian legal persons- it concerns taxable revenues coming from any source, be it Romanian
or foreign;
o Foreign legal entities which carry out activities with permanent establishment in Romania;
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