In accordance with the Romanian Fiscal Code and the signed Double Tax Treaty (DTT) agreements, it is highly recommended that foreign investors provide a Certificate of Tax Residence (CoTR) valid for 2014 in order to benefit from the applicable tax reductions and/or exemptions for income obtained in Romania.
The Certificate of Tax Residence must be provided in original and be valid for the calendar year of issue (i.e. 2014). In such a case, no apostille or notarisation is required on the document.
In case a nonresident investor fails to provide the above mentioned document, the entitled income will be taxed at the standard rate of 16%.
Impact on investors: CoTR for 2014 needs to be provided to UniCredit Tiriac Bank (with respect to tax relief at source related to income collection) and to the appointed fiscal representative (with respect to capital gain tax) by investors seeking to benefit from preferential DTT tax treatment.