“European Court of Justice rulings indicate that the withholding tax for non-resident revenues is against freedoms guaranteed by the European Community Treaty,” according to a Senior Manager at PwC Romania, Alina Rafaila. She said that compliance with EU legislation could lead to the annulment of this tax, which is currently applied to all non-residents, both individuals and companies.
The European Commission launched infringement proceedings against several member states, including Portugal, Spain, Belgium, and Germany. Bulgaria, the Czech Republic and Finland were notified of such proceedings this year. Romania could also be warned to change legislation in the field and, if it does not enact this accordingly, proceedings against Romania might be launched by the European Court of Justice.
