Dividend tax next year will be 8% for dividends paid from 2023 onwards, compared to 5% under Decree 16/2022 (regarding tax increases).

“The law approving OG 16 contains an important clarification regarding the distribution regime during 2022, because since the summer until now there have been discussions about what will happen to the 3 quarters that I could distribute in advance if they remain at 5% or should I will settle them in 2023 with a quota of 8%,” said Dan Manolescu, president of the Chamber of Tax Consultants.

The law clearly states that there is no need for regularization. The 5% rate remains.

That is, as HotNews.ro also wrote on Wednesday, the 5% rate will remain for dividends distributed for the first 3 quarters of 2022. This is after Johannis promulgates the law.

Dan Manolescu Recommendation: Distribute dividends from prior years’ retained earnings to get 5%

“Recommendation for interested parties: who can distribute all prior years of their available amounts as retained earnings, perhaps also distribute dividends for the first 3 quarters, pay 5% tax, and be left with net dividends for when the financial opportunity arises to benefit from 5% of the quota,” Manolescu said.

He reminds that for any distribution from January 1, 2023, the share will be 8%, and possibly higher in the future.

“It is possible that it was even, up to 10%. They are still discussing the progressive rate, other discussions, but until then we can have an equalization of this rate from 8% to 10% with the standard rate of 10% for income tax,” explained the president of the Chamber of Fiscal Consultants.