DOUBLE TAXATION CONVENTIONS AND THEIR IMPLEMENTATION IN ROMANIA

The need to conclude bilateral agreements on avoidance of double taxation is determined by the fact that national tax regulations differ from state to state. In the same time unilateral tax measures adopted by national law to avoid double taxation don’t correspond to tax legislation of all countries with which Romania has economic relations. To avoid double taxation, our country uses both the national rules and conventions for the avoidance of double taxation concluded with partner countries. Although not a member of the Organization for Economic Cooperation and Development, Romania implemented the law provisions of the OECD Model Convention. Thus, national legislation on taxation of income obtained from Romania by non-residents and those obtained by Romanian residents abroad is constantly improved, showing the permanent concern of the authorities to harmonize and update national legislation in line with international economic realities. Romania has concluded so far double taxation conventions with more than 80 countries, using the general rules, solutions and methods of avoiding double taxation from the OECD Model Convention, because its attention is focused on the conclusion of agreements especially with OECD members and their close states.