Starting with January 1st, 2018, the definition of the incomes from Romania from independent activities is regulated as it follows:

(1) The incomes from independent activities conducted in Romania, pursuant to the law, with the exception of the intellectual property rights, are considered as being derived in Romania, regardless if they are received from Romania or from abroad.

(2) The incomes from intellectual property rights are considered as derived from Romania only if they are received from an income payer from Romania or from a non-resident through a its permanent establishment in Romania.

Starting with January 1st, 2018, the following incomes are not taxable, in the understanding of the profit tax: the amounts or the advantages received by natural persons from dependent activities provided in a foreign country, regardless of the tax treatment of that state, including from dependent activities provided on board of ships and aircrafts operated for international traffic. The exception is represented by the salary incomes paid by or on behalf of an employer resident in Romania or who has a permanent establishment in Romania, which are taxable in Romania only if Romania has the taxation right.

This newsletter is issued by ECOVIS Romania as an informing letter over the most important evolutions/changes in the legal and tax fields, and in the investment environment in Romania as well. The information, the analysis and the comments mentioned above are of generic nature and it is not the intention or the imperative of the issuer to be used as a substitute for professional consulting dedicated to individual cases. For advice concerning your specific situation, please contact us directly.

© ECOVIS Romania SRL – 2017