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Romania Fin Ministry: 16% Bank Tax Targets Income After July 1

Revenues obtained before July 1 from bank deposits will not be taxed with 16% under the new fiscal measures, only the income obtained after July 1, according to the Romanian Finance Ministry.
Romania Fin Ministry: 16% Bank Tax Targets Income After July 1
06 iul. 2010, 14:33, English

The ministry informed the Romanian banks’ association ARB about the fiscal treatment of deposits, after several days in which the lenders argued the clarity of the law text.

The Romanian authorities recently introduced a 16% tax on individual income from banking deposits, in a move to extend the general tax base and improve collection.

Banks applied the 16% tax for all revenues obtained by individuals from bank deposits, regardless of the time when the deposit was made. On the other hand, Raiffeisen Bank suspended Monday the taxation of interest for deposits that mature after July 1, pending the publishing of methodological norms for the new Tax Code measures.

ARB president Radu Ghetea said Tuesday the Finance Ministry promised the norms in question will be published this week.