Short note on Romanian tax particularities

Regarding the Romanian tax status, Romanian employers are obliged by law to withhold tax at source and then pay such tax to the competent Romanian state authorities.

Needless to say though, there is no such obligation in all these cases where the Romanian individual employee has been assigned to a country with which Romania has signed a bilateral agreement according to which as long as the individual is employed on foreign soil and for a period of time for which there is certain provision within the aforementioned bilateral agreement, this obligation becomes null.
Seen from the opposite of the spectrum, an individual employee who has been residing in Romania, nevertheless is remunerated by a non-Romanian employer, be it a natural or a legal person, he/ she in principle gets taxed in Romania, unless bilaterally a different arrangement has been provided for.
As far as social security contributions are concerned it could either be the individual himself/ herself or his/ her Romanian employer who gets to pay them, but again this could be arranged by the involved themselves by reaching – and signing – a mutually accepted agreement.

By elaborating a little further on the Romanian tax rate system, we might as well stress the fact that there is the provision for a ten percent flat tax rate both for residents and non-residents.
With respect to tax residency, as it is also pinpointed, Romania retains a wide network of double taxation treaties of the sort that in principle define the necessary preconditions according to which a non- Romanian is treated as if he/ she were a Romanian tax resident, or and vice versa, in what ways a certain individual should be taxed otherwise in case there is a specific bilateral agreement between Romania and the country of origin of that certain individual.

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