As a reminder, by the last day of February 2024, the deadline to file Statement 205 ” Withholding Tax and Investment Gains/Losses Disclosure Statement, for Income Beneficiaries,” and Statement 207 “Withholding Tax/Payer Exempt Income Disclosure Statement, on Non-Resident Income Beneficiaries “ with respect to 2023 and specifically:

1. Declaration 205-207 shall be completed and submitted by taxpayers/intermediaries defined according to the relevant legislation, investment management companies, self-administered investment companies, alternative investment fund managers, Romanian tax residents or non-residents who have a permanent office in Romania that has the status of an intermediary and has the obligation to calculate, withhold and remit income tax under withholding tax regime, pursuant to Title IV of Law no.227/2015 on the Tax Code, as amended and supplemented (Tax Code), for the following types of income:

(a) Dividend income;

(b) interest income;

(c) income in the form of profits from the sale of securities and derivative financial instruments held for a period of more than and including 365 days;

(d) income in the form of profits from the sale of securities and derivative financial instruments held for a period of less than 365 days;

(e) income from the liquidation of a legal entity;

(f) premium income;

(g) gambling proceeds;

(h) income from the collection of tips from employees;

(i) income from other sources, other than income from the collection of tips from employees and income under Article 114 paragraph 2 letter k 1) from the Tax Code.

As is easy to understand Statement 205-207 creates a watershed between income paid by Romanian tax withholding agents to residents and nonresidents.

CM