Protocol on avoidance of double taxation and prevention of fiscal evasion between Romania and Austria

The Law no. 245/2013 introduced several changes intended to sustain the various tax measures stipulated through the provisions of the Protocol amending the Double Taxation Prevention Treaty between Romania and Austria. Above mentioned document acts as an instrument optimized to avoid double taxation but also as a safety tool for prevention of tax evasion in Romania and also Austria. These conventions refer to taxes on income and on capital imposed by each country. In this category there are included all taxes on total income but also on elements of income. The amendments made ​​by Law. 245/2013 are visible in the Article No. 27 concerning the exchange of information related to taxes. Each contracting State shall supply the necessary data. The data will be subject to exchange if being relevant to the content of the Convention and only if they are related to taxes taken into account. The data obtained on this basis shall be considered as secret and any detail provided must be previously accepted by the designated authorities responsible with such duties in the state which was requested to offer the information. These data can be provided and used to conduct public court proceedings. If both states accept the use of information for purposes other than those mentioned, always on a sustained legal basis, the data can be taken into account provided that the competent authority in the State to provide the necessary details authorizes these procedures.

The provisions introduced shall not violate or infringe, in any way, the legislative integrity of both Contracting States. The newly introduced measures are not meant to influence in any way the normal course of the administration in one or both contracting states. Professional or trade secrets shall not be disclosed opposing to public policy principles. Each of the two Contracting States must provide the requested data even if details are not of national interest for the state which was required to disclose these aspects. Information held by financial institutions or similar authorities can be made available for the purposes specified by this convention. The two countries will support a diplomatic cooperation in order to assist on a reciprocal basis in order to supervise the implementation of all the provisions introduced through this Protocol. The protocol will be considered as a part of the Convention and shall remain in force as long as the Convention remains valid. Our law office is able to provide any type of information concerning the Romanian Double Taxation Prevention Treaties and all consequences implied.