Italian investors want double taxation dropped

The Italian investors in Romania are requesting a bilateral agreement between the Romanian and Italian Governments, in order to have the double social security-related taxation dropped. “At present, we have some 20,000 employees in Italian-held companies operating in Romania, but the number is growing. Legally speaking, under the laws of the host country, they should be subject to the Romanian social security provision regimen, but also bound to pay the social security contributions in Italy, as well. This leads to double taxation for companies, without added social benefits, whatsoever,” say the representatives of Unimpresa Romania, an association comprising several Italian-controlled companies. The two states do not have a bilateral agreement updated to the European social security regulation, which stipulates the social security contribution shall be paid only once in the country where the activity is carried out, the contribution period should be cumulated and payment of compensations shall be done by each member state. ZF