The Romanian tax treatment of income obtained from dividends has been the subject of several changes over time. These changes were enacted into the Romanian Tax Code by successive Romanian governments. The most important of them was the decrease of the tax rate from 16% to 5%. Now, the authorities are also preparing changes, as of 1 January 2023.

Find out all the necessary information about Romanian taxes on dividends due in 2022, the obligations you have regarding tax reporting of dividend income, both as a company and as individual shareholder. All of them in the article below.

In short, explaining what dividends are

According to Romanian companies law (Law no. 31/1990), any individual or legal person may benefit from the payment of dividends when he/she owns shares in a company, no matter if it is a limited liability company, or a joint stock company.

Specifically, as per Romanian law, dividends constitute part of the profit that a company makes during a financial period (e.g., during a year). This profit can be distributed to each shareholder or associate in that company, in proportion to the number of shares which the shareholder or associate owns.

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Tax & Legal consultant since 2005.

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