The Ministry of Finance (MoF) has issued on the 24th July 2024 the decision # 791/1 in application of the articles 17 & 54 of the 2024 Budget Law # 324, that amended the article 43 of the income tax law and its amendments. According to this decision, the non-resident tax has to be paid in the same currency of the service rendered by the non-resident supplier (USD or EUR, as for other currencies it should be converted and paid in USD), starting from the 2nd quarter of the year 2024. The non-resident tax, calculated and withheld according to the articles 41 & 42 of the income tax law, has been amended to be 3.4% on goods (i.e. 20% of 17% corporate income tax) and 8.5% on services (i.e. 50% of 17% corporate income tax) starting from the 1st April 2024.
The old non-resident tax rates (2.25% and 7.5%) based on the 15% income tax rate remain applicable for all tax declarations prior to the 31 March 2024 (inclusive).