The establishment of fixed offices or permanent establishments generates important fiscal consequences from the perspective of VAT or profit tax for foreign companies that have a presence in Romania.
Permanent establishment is an international concept that is derived mostly from international treaties for the avoidance of double taxation, being the object of bilateral negotiations between states, while the fixed establishment is a concept derived from the VAT legislation of the European Union, which is applied uniformly at the level of the Member States.
Source Taxand
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