Profit taxation

According to Law, profit from investing in fund units is subject to income taxation of 16% of profit.

Note: Companies need to register profit from fund unit investments as financial gains in their accounting books as redemption is not subject to taxation or automatic tax withdrawal and transfer to the Financial Authorities.

The tax on profit applied for all gains (no matter the year of acquisition) is 16% of profit. The percentage is not subject to automatic withdrawal made by BT Asset Management, the income statement and the payment of tax being exclusively made by the investor.

 1. What documents does BT Asset Management send and when? 
 2. What documents do I need to fill out and where should I send them?
 3. What is the due date for Form 200 and when is the income tax paid? 
 4. Do losses from one year report to the next?
 5. Have there been any tax exemptions recently?
 6. What is the difference in profit taxation between resident and nonresident individuals?

 1. What documents does BT Asset Management send and when?
If within the course of a quarter year you have redeemed fund units at a gain or loss, you will be receiving a letter with your Portfolio from BT Asset Management the following month of the quarter year. The Portfolio details your identification information along with details about your profit/loss to be declared.

> back

 2. What documents do I need to fill out and where should I send them?
Based on the Portofolio form issued by BT Asset Management you should fill out Tax Form 225.

Download 225 Form here   

Download 200 Form here

Two copies of Tax Form 225 need to be handed in at the appropriate Financial Administration based on where you live, or sent via post to the ANAF. (addresses of ANAF offices around the country)

> back

 3. What is the due date for Form 225/200 and when is the income tax paid?
Tax Form 225 (quarter year) needs to be handed in by day 25 of the first month after the quarter year for which it has been issued, wich is also due date for the tax. Tax Form 200 (yearly) has a due date of May 15th the year after the unit fund redemption. Based on this form the Financial Authorities will issue a tax statement in September/October, for which you have 60 days to make the payment from the day after the statement has been received.

> back

 4. Do losses from one year report to the next?
Beginning with July 2010, financial losses can be reported seven (7) following years, thus diminishing the income tax for profitable years. Reporting is only valid for 7 consecutive years, after which it is disconsidered. 

> back

 5. Have there been any tax exemptions recently?
For individuals, profits obtained in 2009 are tax exempt because of the Government Ordinance that modified the Fiscal Code, being valid only for profit made in 2009, whatever the investment length in fund units. Beginning 2010 two-tier taxation was reinstated, based on investment time length and from July 2010 is applied a one-tier taxation of 16% of profit. 

> back

 6.What is the difference in profit taxation between resident and nonresident individuals? 
Profit tax is the same for both resident and nonresident individuals.

0264 410 433, 0374 097 433