Loading page...

Romanian Business News - ACTMedia :: Services|About us|Contact|RSS RSS

Subscribe|Login

Commission asks ROMANIA to stop the discriminatory tax treatment of non- resident individuals receiving income from Romania

The Commission has requested Romania to amend its rules on the taxation of income from independent activities of non-resident individuals. The European Commission considers that they constitute a restriction to the freedom to provide services and to the free movement of capital in the Internal Market.

 

Currently, resident individuals deriving comparable income can deduct the business expenses connected to that income. This results in taxing only the net income. However, individuals established in another EU/EEA State and without a permanent establishment in Romania cannot benefit from such a deduction, and are taxed on the gross income obtained from Romania.

 

The Commission sees no valid justification for such a heavier taxation of the income of individuals established in another EU/EEA States, and considers it to be discriminatory and to constitute a restriction to the freedom to provide services and to the free movement of capital, as interpreted by the Court of Justice (cases C-234/01 Gerritse, C-290/04 FKP Scorpio and C-345/04 Centro Equestre).

 

The Commission has therefore asked Romania to amend its rules in order to comply with EU law. The request takes the form of a reasoned opinion. In the absence of a satisfactory response within two months, the Commission may refer the matter to the Court of Justice of the European Union.

More