Tax on interest will apply only to money made after July 1

Earnings from bank deposits before July 1 will not be taxed at 16 percent under the new fiscal measures, only income obtained after July 1, according to the Romanian Finance Ministry.

Last week, Raiffeisen Bank, one of the top ten bank on the local market, suspended the withholding of the 16 percent tax on interest paid on customer deposits, which came into force on July 1, until the government published the implementation rules in the Official Registry.

The applicability norms regarding the tax were clarified later by notification sent by the ministry to the Romanian Banks’ Association, ARB.

Initially, banks applied the 16 percent tax on all revenues obtained by individuals from bank deposits, regardless of the time when the deposit was made, as demanded by the Finance Ministry.

Staff

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