Why You Need It and How to Get It?

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Steps, Forms and Required Documents

Find out how to avoid double taxation if you work in the European Union. Learn how tax residency is determined, which forms are required, and what solutions are available to comply with international tax regulations. Information about the tax residence certificate and ANAF procedures.

Tax residency is determined not only based on the main source of income, but also on criteria such as domicile, permanent home, the center of vital interests, and the period of stay. Obtaining the tax residence certificate is necessary to confirm your place of tax residency.

Even if you earn the majority of your income in another EU Member State, if you still maintain strong ties to Romania (such as family, property, or other interests) and have not officially updated your tax residency, the Romanian tax authorities will consider you a Romanian tax resident.

Double taxation relief forms are completed to clarify this situation and to prevent double taxation. They serve as documentation proving that, although the main income is earned in another Member State, the tax paid there will be taken into account (through tax credit or exemption) when calculating the tax due in Romania, in accordance with the bilateral convention.

Therefore, completing the necessary forms is required to avoid double taxation of income, even if the majority of the money comes from the respective Member State.

Many citizens working in the European Union face challenges when it comes to filing for double taxation relief. These difficulties arise due to the complexity of international tax law and the differences between the tax systems of Member States.

What is Double Taxation?

Double taxation occurs when the same income is taxed in two different countries. For example, if a Romanian works in Austria, their income may be subject to taxation both in Austria and in Romania. To prevent this situation, Romania has signed double taxation avoidance agreements with several countries.

Recommendation. Considering the complexity of international tax procedures, it is recommended to consult a specialist in the field or a lawyer with experience in tax law. This ensures that you meet all legal obligations and benefit from all the rights provided by law.

Note. The information presented above is for guidance only and is based on the legislation in force at the time of drafting this material. For the latest updates and detailed information, we recommend consulting the official sources mentioned.

Understanding Tax Residency and Avoiding Double Taxation

Therefore, tax classes and tax structures are not uniform across all EU member states. As a result, there are significant variations between countries depending on national policies and legislation. Obtaining a tax residence certificate is essential to avoid potential issues and the unjustified imposition of double taxation.

Tax Residence Certificate: Have you protected yourself against double taxation?

To obtain a tax residence certificate in Romania and benefit from the provisions of double taxation avoidance agreements, it is essential to follow the specific legal procedures. Failure to comply with these procedures can lead to double taxation of income and potential penalties.
Our law office offers full assistance in this process, including:
✅ Customised consultancy: We guide you in determining the correct tax residence.
✅ Document preparation and submission: We handle the completion and submission of the necessary requests and declarations to the tax authorities.
✅ Representation before authorities: We represent you in dealings with ANAF and other relevant institutions to ensure compliance with the applicable legislation.
Don’t put tax compliance last! Make sure your income is taxed correctly and that you benefit from all the rights provided by the law.
Contact us now for a customised legal consultation !

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