International Tax Structuring
Our integrated network of tax specialists is highly experienced in addressing complex international taxation aspects and structuring your business in a tax-efficient manner, including implementation of the contemplated structure.
Mazars’ advice can help you identify the tax exposure in Romania of cross-border transactions and find options apt to diminish the non-residents’ tax exposure in Romania.
Our experts can also advise you on international tax aspects of business restructuring, identify tax efficient solutions for intellectual property migration to address operational changes in your business structure, suggest optimal finance and treasury solutions for your business in order to optimise the overall tax position of your business and mitigate any local tax authority challenges.
EU Tax Legislation
Romania’s accession to the EU brought significant changes in our legislation, some of the main areas which have been affected being direct and indirect taxation, environmental protection, Labour Law and Intellectual Property Law. However, the most direct and immediate impact on Romanian companies has been felt at the level of tax legislation.
Our tax specialists are experienced in advising clients on various issues deriving from the EU tax legislation, such as:
- EU tax opportunities for our clients;
- Compliance with relevant provisions of EU law;
- Assistance on legal actions against local tax authorities and litigation before local courts and the European Court of Justice.
Non-residents obtaining revenues from Romania (such as interest, royalties, services, dividends, commissions, revenues derived from liquidation of a Romanian legal entity) are subject to a 16% withholding tax (“WHT”) in Romania.
Our tax experts can advise you on any options apt to diminish the non-resident’s tax exposure in Romania, by applying the provisions of either the relevant EU Directives, as the case may be, or the relevant Double Taxation Treaties, if the conditions required by law are met.
Moreover, we can assist you with:
- Finding solutions for reimbursement of the WHT paid in Romania in excess of the WHT rate provided in the Double Taxation Treaties;
- Obtaining the certificate attesting the payment of the WHT in Romania, based on which the non-resident may claim tax credit / tax exemption in its country of residence.
Permanent establishment is a special tax concept which designates in principle the taxable presence of a company in a country other than its country of residence. Thus, a permanent establishment is defined as a fixed place through which the activity of a non-resident is conducted, fully or partially, either directly or through a dependent agent.
We are ready to assist our clients in structuring their investment in Romania, by implementing a structure which fits best their interests (permanent establishment, branch, joint venture, limited liability company or joint-stock company).