Romanian Tax Rules On Non-Residents Challenged
By Lorys Charalambous, Tax-News.com, Cyprus
02 December 2014
The European Commission has asked Romania to stop the discriminatory tax treatment of non-resident individuals receiving income from Romania.
Currently, non-resident individuals based in a European Union or European Economic Area state who lack a permanent establishment (PE) in Romania are unable to deduct business expenses from their tax liability. However, residents of Romania receiving comparable income can make a deduction for expenses and are therefore taxed only on the net amount.
The higher burden on non-resident individuals without a PE in Romania constitutes an unjustifiable restriction on the freedom to provide services and on the free movement of capital, the Commission said, as in previous cases of the European Court of Justice in Gerritse (C-234/01), FKP Scorpio (C-290/04) and Centro Equestre (C-345/04).
In its reasoned opinion, the EC has therefore requested that Romania amend its rules in order to comply with EU law. It says that the matter may be referred to the ECJ unless a satisfactory response is received within two months.
To see today's news, click here.
Tax-News Reviews

A review and forecast of Cyprus's international business, legal and investment climate.

A review and forecast of Malta's international business, legal and investment climate.

A review and forecast of Jersey's international business, legal and investment climate.

A review of the latest budget news and government financial statements from around the world.
Stay Updated
Please enter your email address to join the Tax-News.com mailing list. View previous newsletters.
By subscribing to our newsletter service, you agree to our Terms and Conditions and Privacy Policy.
To manage your mailing list preferences, please click here »
Network Blogs and Features
- Big changes Afoot... »
- I.T. is IT! »
- What Is a Registered Agent, and Why You Need a Registered Agent for Your Business? »
- Spring Cleaning? »
- Brexit and Covid and Tax, Oh My! »
- Why is the Hong Kong startup ecosystem growing rapidly? »
- Happy Holidays? »
- COVID Continues To Capture Headlines »
- Taxing The Zeroes And Ones »
- Value Added News... »