Romania: Limited deductions concerning receivables | KPMG Global
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Romania: Limited deductions concerning receivables; tax rules for representative offices

Romania: Limited deductions concerning receivables

New measures in Romania’s tax law have been enacted and generally are effective 1 January 2018.


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Ordinance no. 25/2017 was published in the official journal on 31 August 2017, and includes the following tax provisions:

  • Corporate income tax—deductions of expenses incurred in relation to the disposal of receivables are limited to 30% of the receivable’s value (under current law, such expenses are fully deductible)
  • Taxation of foreign representative offices—The amount of tax due will be RON18,000 (the tax currently is €4,000), and there are changes to the rules for when such taxes must be paid (no longer will they be allowed in installments, and must be paid within 30 days of the date when a new representative office is established or when a representative office is closed).
  • Income derived from “independent activities” conducted in Romania (except for income derived from intellectual property) will be considered to be Romanian source income regardless whether it is obtained from Romania or from abroad. Income from intellectual property will be considered to be Romanian sourced only if it is obtained from a Romanian income payer or from a nonresident through a permanent establishment in Romania.

There are also new measures concerning individual (personal) income taxation.


Read a September 2017 report [PDF 355 KB] prepared by the KPMG member firm in Romania

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