The Commission has requested Romania to amend its rules on the taxation of interest income because they restrict the free provision of services and the free movement of capital in the EU single market.

Currently, resident legal entities can deduct the business expenses related to generating interest income. This results only their net income being taxed. However, legal entities established in another EU/EEA State and without a permanent establishment in Romania cannot benefit from such a deduction, and are taxed more heavily on their gross interest income obtained directly from Romania.The Commission sees no valid justification for this different tax treatment, and considers it to be discriminatory and a restriction on the free movement of services.

Press release


Informatiesoort: Nieuws

Rubriek: Europees belastingrecht

H&I: Previews


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