China-Romania Tax Treaty Signed by Wang Qinfeng on Behalf of China
CHINATAX. On the afternoon of July 4 local time, Chinese Deputy Administrator of the State Administration of Taxation (SAT) Wang Qinfeng and Minister of Romania Finance Ministry Public Ms. Anca Dana Dragu signed Agreement between the People’s Republic of China and Romania for the Elimination of Double Taxation and the Prevention of Tax Evasion with Respect to Taxes on Income (the new Agreement).
The new Agreement is an comprehensive amendment to Agreement between the Government of the People’s Republic of China and the Government of Romania for the Avoidance of Double Taxation and the Prevention of Tax Evasion with Respect to Taxes on Income (the existing Agreement) signed in1991, and it is also the first comprehensively revised tax treaty between China and the 16 countries of Central and Eastern Europe (CEE).
Compared with the existing Agreement, the new Agreement dramatically reduces the restricted tax rates on income, such as dividends, interests and royalties, and adds stipulations on tax exemption. These measures are favorable for further promoting China-Romania investment and business ties, and have set a good example of improving fundamentals of law for tax cooperation between China and other Belt & Road countries.