According to the Law 296/2020 published in the Official Gazette of Romania, the following new tax provisions have been established effective 1 January 2021:
- the WHT rate is reduced from 16% to 10% on interest, royalties and commissions obtained in Romania by:
- Individuals resident in EU member states;
- Individuals resident in non-EU member states, with which Romania has a DTT in place;
- no withholding tax is applied on securities lending operations;
- acceptance of tax residency certificates issued electronically / online in the country of residence
Impact on investors: Clients should take note of the above changes in the Fiscal code.