Dividends paid by Romanian company to Romanian/EU “mom”. Normally, the dividend payment is subject to a 16% withholding tax; the obligation is on the payer to withhold the tax and pay it within the legal deadlines and file the relevant tax return. However if certain conditions are met, the dividend is exempt from any withholding tax.

Dividends paid by Romanian company to Romanian natural person partner

This case falls under the ordinary application of the 16 percent withholding tax. Therefore, the income received by the individual partner will be subject to ordinary withholding and may also result in the obligation to pay health and social security contributions.

Dividends paid by Romanian company to EU resident natural person partner

Dividend income collected by the resident partner taxpayer abroad is subject to the same obligation as for the resident. However, it is possible to request, if it has been stipulated, the application of the International Convention against double taxation signed by Romania and the state of residence of the partner. No health and social security contributions are payable by the nonresident.

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