Romania and Greece have concluded on September 17, 1991, the Convention for the avoidance of double taxation with respect to taxes on income and property.
The Convention refers to the taxes applied to the persons who are residents (subject of imposition) on behalf of a Contracting State, respectively to individuals, companies and other associations.

The Convention refers to the taxes on income and on property, imposed on behalf of a Contracting State, irrespective of the manner in which they are levied. Specifically, the Convention is applied to the existing taxes, respectively:
a) In the case of Romania:
(i) tax on income derived by individuals;
(ii) tax on salaries and other similar remuneration;
(iii) tax on profits;
(iv) tax on income of the individuals from agricultural activities.
(b) In the case of Greece:
(i) tax on the income and property of the individuals;
(ii) tax on the income and property of the companies;
(iii) the tax for the Agency of Delivery and Draining water, calculated on the total income from buildings.
The Convention shall apply to any other identical or substantially similar taxes, which are imposed after the date of signiture of the Convention. The contracting states shall notify each other of any significant changes which have been made in their national taxation laws, at the end of each year.

The Convention establishes the criteria to determine the residents liable to pay taxes in a Contracting State, in the following order:
  1. The criterion of residence in one of the Contracting States (domicile of the individuals, registered offices of the companies, headquarters etc.;
  2. In case the persons are residents in both states, the fiscal domicile shall be determined as follows:
    (a) In the state where (1) the person has a permanent home available to him, or (2) in the State with which his personal and economic relations are closer (centre of vital interests).
    (b) In case it cannot be determined the centre of vital interests or when the person does not have a permanent home in any of the Contracting States, his tax residence will be considered in the state where that person usually lives;
    (c) if the respective usually lives in both Contracting States or he does not usually live in any of them, he shall be deemed a resident of the Contracting State whose national he is;
    (d) if that person is a national of both Contracting States or he is not a national of none of them, then the competent authorities of the Contracting States shall settle the question by mutual agreement.
  3. When, under the provisions of paragraph 1 above, a person other than an individual, is a resident of both Contracting States, then it will be considered to be a resident of a Contracting State in which is situated the place of its effective management.

The Convention stipulates what is meant by the term "permanent establishment" of an enterprise and establishes the criteria according to which it is determined.

The Convention refers to the following categories of income:
  1. Income from immovable property;
  2. Enterprises profits;
  3. The profits obtaind from shipping and air transport;
  4. Profits of the associated enterprises;
  5. Dividends;
  6. Interests;
  7. Commissions
  8. Royalties;
  9. Capital gains;
  10. Independent personal services;
  11. Dependent personal services;
  12. The fee of the members of the board or management;
  13. The income of artists and sportsmen;
  14. Pensions;
  15. Government service;
  16. Professors’ fee;
  17. Remuneration derived by students, trainees and persons on specialization
  18. 18.) Other income

Regarding the imposition of property, the Convention stipulates that the property represented by immovable assets (including agriculture and forestry), owned by a resident of a Contracting State in the other Contracting State, shall be taxed in that Contracting State.

The Convention stipulates the following methods to eliminate double taxation, which apply in the situations where a resident of a Contracting State derives income or owns property which, in accordance with this Convention, may be taxed in the other Contracting State. In this situation, the first-mentioned State shall grant:
a.) As an exempt of the tax on income of the respective resident – an amount equal to the tax on income paid in that State;
b.) As an exempt of the tax on property of the respective resident – an amount equal to the tax on property paid in that State;
However, this deduction can not exceed that part of the tax on income or on property, as it was calculated before the deduction, which is attributable to the income or to the property imposable in that State.

The Convention also refers to the possibility of amicable settlement, in case a person considers that it was injured as a result of taxation which is not in accordance with the Convention.


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