As part of Law No. 296 of 18 December 2020, Romania has introduced several individual income tax amendments for 2021. The main measures include:

• The withholding tax rate on payments to non-resident individuals is reduced from 16% to 10%, which applies for interest payments, royalties, commissions, fees for management and consulting activities, and fees for services performed in Romania;
• It is clarified that non-resident individuals with their center of vital interests in Romania become subject to tax in Romania on their worldwide income from the date the center of vital interests in Romania is declared;
• It is clarified that non-resident individuals present in Romania for more than 183 days in any period of 12 consecutive months ending in a calendar year become subject to tax in Romania on their worldwide income from the first day of arrival in Romania; and
• The deadline for individuals to submit the annual single tax return for income tax and social security contributions and make payment is set at 25 May of the following year (previously 15 March).

The amendments apply from 1 January 2021.