In case a Romanian legal entity pays the dividends to another Romanian legal entity, it is required to withhold, declare and pay tax on dividends to the state budget until the 25th of the month in which the dividends are paid.
In case the dividends have not been paid by the end of the year in which the annual financial statements have been approved, the dividend tax is paid up to January 25 of the following year, namely until the 25th of the first month of the amended fiscal year, following the year in which the annual financial statements have been approved. By way of exception, these provisions do not apply to the dividends distributed and unpaid until the end of the year in which the annual financial statements have been approved, if in the last day of the calendar or modified fiscal year, the legal entity which receives the dividends is found in the situation stipulated in art. 43 para. 4 of Law no. 227/2015, ie if the legal entity receiving the dividends owns, at the payment day of the dividends, minimum 10% of the participation titles of the other legal entity, for a period of one year from the date of payment of these including.
For individuals receiving dividends, starting in January 2016 it is maintained the 5% percentage of the gross dividend paid. But, since January 2016, the persons who obtain income from dividends do not owe social health insurance contribution for that income in case they obtain income from wages, pensions, independent activities, association with a legal person, etc., except the earnings from intellectual property rights.
For the categories of persons who obtain income from dividends and due to the social health insurance contribution for such income, the contribution will be determined by the competent tax authority, by the annual tax decision.