1 November 2018
On 29 October 2018, the Romanian Chamber of Deputies approved and forwarded to the Senate the bill for the ratification of the pending income tax treaty with Spain. The treaty, signed 18 October 2017, will replace the 1979 tax treaty between the two countries.
The treaty covers Romanian tax on income and tax on profit and covers Spanish income tax on individuals, corporation tax, and income tax on non-residents.
The following capital gains derived by a resident of one Contracting State may be taxed by the other State:
Gains from the alienation of other property by a resident of a Contracting State may only be taxed by that State
Both countries apply the credit method for the elimination of double taxation.
The treaty will enter into force three months after the ratification instruments are exchanged and will apply from 1 January of the year following its entry into force. The 1979 tax treaty between the two countries will cease to have effect on the date the new treaty is effective.
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