Dividend tax in Romania in 2023

1. Tax on dividend income

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In Romania, the tax on dividends in 2022 is 5%, but due to the new

regulations, it will increase to 8% in 2023. This distribution of dividend income

will be valid after 1 January.

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So, if you distribute the profit after 1 January 2023, you will have to pay 8% tax,

regardless of whether the profit comes from 2022 or previous years.

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In 2022, you can distribute the following amounts:

• Profits from previous years not distributed
• Profits for 2022, including those achieved in the third quarter

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2. Health contribution for dividends

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This is paid by the individual who receives the dividend income. It has

10% rate, and if in 2022 it is applied to the 12 salary ceiling, in 2023 there will be 3

ceilings respectively:

• 6 gross minimum wages - in case of income between 6 and 12 gross minimum wages;
• 12 gross minimum wages - in case of income between 12 and 24 gross minimum wages;

• 24 gross minimum wages - if the income earned exceeds 24 gross minimum wages.

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3. Tax returns filed for dividends

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Depending on the individual:

• The single declaration for CASS contribution is required for people who receive (and) make income from dividends.

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Depending on the legal entity:

• Declaration 100 on withholding tax must be filed by the 25th of the month following the payment of the dividend. If the dividends have only been distributed, then this return must be filed by 25 January of the following year;

• For dividends distributed in the current year, you must file your 205 return by the end of February of the following year;

• Annual financial statements, which include information on dividends.

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4. Dividend payment deadlines

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These deadlines can be found in the Companies Act. In principle, dividends can be

optionally distributed quarterly on the basis of the interim financial statements and annually after

adjustment, based on the annual financial statements.

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This adjustment results from differences in distributions during the year and must

be made within 60 days of the date of approval of the annual financial statements for

previous financial year.

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If quarterly dividends exceed annual dividends, members or shareholders must

return to the company within 60 days of the date of approval of the annual financial statements,

any extra dividend received.

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