Romania - Special considerations for short-term assignments

Romania - Special considerations for short-term..

Taxation of international executives

Related content

Residency rules

Payroll considerations

Taxable income

Additional considerations

For the purposes of this publication, a short-term assignment is defined as an assignment that lasts for less than one year.

Residency rules

Are there special residency considerations for short-term assignments?

Short-term assignees will only be liable to Romanian tax on Romanian-sourced income , if they do not meet the Romanian tax residence test or if they can provide a tax residence certificate issued by a country with which Romania has concluded a tax treaty.

Payroll considerations

Are there special payroll considerations for short-term assignments?

No.

Taxable income

What income will be taxed during short-term assignments?

Romanian-sourced income only.

Additional considerations

Are there any additional considerations that should be considered before initiating a short-term assignment in Romania?

In order to avail beneficial provisions of the respective tax treaty (if applicable), the individuals on short-term assignments should be in possession of tax residence certificates issued by the tax authorities in their home countries.

© 2017 KPMG Romania S.R.L., a Romanian limited liability company and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity.

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