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Romania - Special considerations for short-term assignments

Romania - Special considerations for short-term..

Taxation of international executives

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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 1 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/jurisdiction 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, if the Romanian tax residence conditions are not met or if a tax residence certificate can be provided.

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/territories.

Disclaimer

All information contained in this publication is summarized by KPMG in Romania, the Romanian member firm affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity, based on the New Romanian Tax Code, Law no. 227/2015 in force beginning 1 January 2016.

©2021 KPMG România S.R.L., o societate cu răspundere limitată de drept român, membră a organizației globale KPMG, compusă din societăți membre independente afiliate KPMG International Limited, societate privată engleză cu raspundere limitată la garanții.  Toate drepturile rezervate.

Pentru mai multe detalii despre structura globală a KPMG, accesați https://home.kpmg/governance

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