Doing Business with Romania - Über die Osec

quota onto the gross revenue) is retained and transferred to the state budget by the taxpayer.
Consequently, the interest paid to a non-resident is subject to withholding tax in Romania (16%). The
rate may be reduced based on the provisions of the relevant DTT.
For the permanent establishment, the taxation treatment of interest is the same as for the Romanian
legal person, if such interest is an expense deductible for the permanent establishment.
Royalties - Royalties paid to a non-resident are subject to withholding tax in Romania (16%). The
rate may be reduced based on the provisions of the relevant DTT.
According to the Agreement signed between Switzerland and the European Community interest and
royalty payments made between associated companies or their permanent establishments are not
subject to taxation in the state of source, if there are met a number of conditions, mentioned in this
agreement.
Capital gains - Foreign legal persons that obtain income from immovable property located in
Romania or from the sale-assignment of participation stock in a Romanian legal person are required
to pay the profit tax for the taxable profit related to such income.
Gambling - In case of income obtained from gambling, the tax shall be calculated by applying the
20% quota onto the gross income.
Transfer prices rules
The Romanian tax authorities may, in order to calculate the tax obligations of the affiliated persons, to
reconsider the records of the affiliate in Romania for the purpose of tax investigation, if following the
special relations between the Romanian affiliate and the foreign person, these records do not reflect
the actual taxable profits sourced from Romania.
Affiliate’s records are not reconsidered whenever the transactions between such affiliates are
conducted in commercial terms on the free market.
TAXATION ON WAGES AND CONTRIBUTIONS TO THE STATE SECURITIES BUDGET
According to Romanian employment regulations, both employer and employee have to contribute to
the social security system but the employer is the one who has to withhold and pay all salary
contributions to the state.
Social security contributions at the employer level:
o Social security contribution – between 20.8% and 30.8%, depending on working conditions. It is
calculated and paid monthly taking into account the total gross amount paid to employees.
o Health fund contribution - 5.2% of the total gross amounts paid to employees; it is withheld and
paid every month.
o Unemployment fund contribution – 0.5% applied to the gross monthly amount paid to employees.
o Contribution for medical leave and indemnity - 0.85% of the total gross amount paid to employees
on a monthly basis, capped at 12 national minimum gross salaries multiplied with the number of
insured persons
o Contribution to the National insurance fund for work accidents and professional diseases - the
contribution ranges between 0.15% and 0.85% and depends on the risk category; the basis is the
total gross monthly amount paid to employees.
o Labour Chamber commission - 0.25% or 0.75% applied to the total gross amount paid to
employees. It is paid monthly and the different percentage depends on the keeper of the
workbooks: the Labour Chamber or the company through the human resources inspector.
o Contribution to the Guarantee fund for payment of salary debts - 0.25% applied to the total gross
amount paid to employees; the basis of calculus is monthly.
� VAT
Taxable operations
According to the Fiscal Code, operations that cumulatively fulfil the following conditions are subject to
VAT:
o they represent a supply of goods or services against payment;
o the place of delivery of goods or supply of services is considered to be in Romania;
o the delivery of goods or supply of services is made by a taxable person;
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