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Application of international double taxation conventions in Romania

Author

Listed:
  • Florin Dumiter

    (“Vasile Goldis” Western University of Arad, Romania)

  • Stefania Jimon

    (“Vasile Goldis” Western University of Arad, Romania)

Abstract

In this article we sought to address the international double taxation phenomenon from two different standpoints. To begin with, in the first part we analysed the framework of international double taxation, and how this topic was tackled in both Romanian and international literature.International double taxation has been analyzed, mutatis mutandis, from an economic perspective, more precisely in terms of the implications that it generates on economies, on added value, on capital flows, on the internationalisation of business. Second, I believed it was important to analyse international double taxation from a legal perspective, through the jurisdictional effects of obtaining income or holding property at the European or international level. Romania's case is carefully approached in this paper, aiming to highlight the issues Romania is facing concerning cooperation in tax matters with authorities from other countries, how the more than 80 double taxation conventions are applied and interpreted, but also other aspects that should be considered by the Romanian tax authorities, based on the provisions of the Fiscal Code and the Fiscal Procedure Code. The article ends by presenting, commenting on and analysing two test cases in international double taxation, of remarkable importance and actuality for Romanian jurisprudence to observe how complex double taxation mechanisms operate in practice. The conclusion of this article emphasises the importance ofsignificant “steps” achieved by Romania on the path to creating a true “fiscal area” in the European Union, as well as the “corridors” that should be inserted to correct economic – legal and economic deficiencies and gaps, in order to strengthen the fiscal area.

Suggested Citation

  • Florin Dumiter & Stefania Jimon, 2016. "Application of international double taxation conventions in Romania," Juridical Tribune - Review of Comparative and International Law, Bucharest Academy of Economic Studies, vol. 6(2), pages 182-201, December.
  • Handle: RePEc:asr:journl:v:6:y:2016:i:2:p:182-201
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    References listed on IDEAS

    as
    1. Fabian Barthel & Matthias Busse & Eric Neumayer, 2010. "The Impact Of Double Taxation Treaties On Foreign Direct Investment: Evidence From Large Dyadic Panel Data," Contemporary Economic Policy, Western Economic Association International, vol. 28(3), pages 366-377, July.
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    More about this item

    Keywords

    economic double taxation; legal double taxation; double taxation conventions; fiscal area; treaty shopping; taxpayer; income tax; capital tax.;
    All these keywords.

    JEL classification:

    • H24 - Public Economics - - Taxation, Subsidies, and Revenue - - - Personal Income and Other Nonbusiness Taxes and Subsidies
    • H30 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - General
    • K34 - Law and Economics - - Other Substantive Areas of Law - - - Tax Law
    • K40 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - General

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