Is the interest earned on term deposits taxable?

Yes, the income from interest related to savings instruments is taxed at 10%, according to the legislation in force. 📜

The respective tax is withheld "at source," which means that we take care of paying the tax to the state, and the interest you will receive at the maturity of the deposit will be 10% less. 📉 However, the standard rate is 16% in the case of non-resident legal entities and individuals from a non-EU country or a country that has not signed a double taxation avoidance agreement with Romania.

Tips: the tax rates applied to non-resident persons may be reduced or eliminated if a valid tax residence certificate is presented to the bank. Note: in addition to the interest tax withheld by the bank, the resident natural person may have tax obligations related to social contributions (CASS), depending on the level of income from interest and other extra-salary income, according to the legal ceilings. See more details qui.