The government in Romania has made the following tax changes.

1. Transfer tax

Stamp duty on land transfer has been cut by 50%.

Currently there is no tax levied on property transactions executed by individuals. As of May 1, 2005, the Romanian authorities plan to apply a tax rate of 10%.

2. Profits tax

The standard profit tax rate is now 16% - reduced from 25%.

For capital gains resulting from the sale of properties the profit tax is to be determined by applying a tax rate of 10%, subject to the following conditions:

a) the taxpayer owned the property for a period of more than two years;
b) the person that acquired the property is not an affiliated person of the taxpayer;

3. Rental income tax

A flat income tax rate of 16% applies to rental income.

The net income is to be determined by deducting expenses of 25% of the gross income.
 
4. Dividends tax

Income from dividends is taxed at 10% (compared to 5% as previously set forth for individuals).

Please also note a new email address for Octavian Bota -tavi.bota@gmail.com