Individual - Foreign tax relief and tax treaties

Last reviewed - 16 October 2023

Foreign tax relief

A foreign tax credit may be granted, in accordance with the relevant DTT, provided that the tax paid abroad for the income obtained abroad was actually paid directly by the natural person or by their legal representative. The payment of the tax abroad must be proved with justifying official documents issued by the foreign country’s tax authorities or, in certain circumstances, with documents issued by the payer of the income withholding the income tax or by means of tax returns and the proof of income tax payment.

The tax credit is granted at the level of the tax paid abroad for income derived from abroad, but it may not exceed the part of the income tax payable in Romania related to the taxable income from abroad. In case the taxpayer in question obtains incomes from abroad from several countries, then the tax credit admitted to be deducted from the tax payable in Romania shall be calculated, according to the above-mentioned procedure, for each country and each category of income.

Tax treaties

Countries with which Romania currently has DTTs:

Albania France Macedonia South Africa
Algeria Georgia Malaysia Spain
Armenia Germany Malta Sri Lanka
Australia Greece Mexico Sudan
Austria Hong Kong Moldova Sweden
Azerbaijan Hungary Montenegro (applicable with Serbia) Switzerland
Bangladesh Iceland Morocco Syria
Belarus India Namibia Tajikistan
Belgium Indonesia Netherlands Thailand
Bosnia and Herzegovina Iran Nigeria Tunisia
Bulgaria Ireland Norway Turkey
Canada Israel Pakistan Turkmenistan
China Italy Philippines Ukraine
Croatia Japan Poland United Arab Emirates
Cyprus Jordan Portugal United Kingdom
Czech Republic Kazakhstan Qatar United States
Denmark Korea Russia Uruguay
Ecuador Kuwait San Marino Uzbekistan
Egypt Latvia Saudi Arabia Vietnam
Estonia Lebanon Singapore Zambia
Ethiopia Lithuania Slovakia  
Finland Luxembourg Slovenia