Local and Cross-Border Tax Structuring
Our integrated network of tax specialists is highly experienced in addressing complex taxation aspects and providing tax structuring options in an optimised manner, from design to implementation.
Our experts can advise you on international tax aspects of business restructuring, identify solutions for intellectual property migration to address operational changes in your business structure, suggest optimal finance and treasury solutions for your business and mitigate any local tax risks.
Our team can also provide you advice with respect to the tax/legal form in which an entity can be established in Romania (e.g. permanent establishment, subsidiary, etc.), as well as full legal advice on such incorporation issues in cooperation with our trusted external lawyers with whom Mazars cooperates.
EU 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 (e.g. AEO);
- 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 (e.g. interest, royalties, services, dividends, commissions, etc.) are subject to a 16% withholding tax (“WHT”) in Romania.
Our tax experts can advise you on the applications of the more favourable conditions provided either by the relevant EU Directives transposed into domestic legislation, or the relevant Double Taxation Treaties concluded by Romania with partner countries.
Moreover, we can assist you with:
- Finding solutions for reimbursement of the excess WHT paid in Romania, as well as with the preparation and filling of the required paperwork;
- Obtaining the certificate for proof of 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 non-resident company in a foreign country. 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.
Out tax team is able to perform in-depth assessments on whether a permanent establishment is triggered in Romania, as well as analysis in respect of a VAT fixed establishment. Such assessments are usually followed by recommendations with respect to changing the business structure in order to mitigate such risks.
Additionally, our team can assist you in the registration process of both a permanent establishment and a VAT fixed establishment, as well as with all the required past and future tax compliance.