Withholding tax on commissions for intermediaries

With Law No. 2131 of December 30, 2023, also known as the “2024 Budget Law,” the exemption from the application of withholding tax on fees received by insurance intermediaries has been repealed.

Starting from April 1st, 2024, a withholding tax with a rate of 23% will be applied – on 50% of the commission fees or, if the intermediary employs staff and/or collaborators, on 20%. In the calculation the commission fees directly recognized by insurance companies towards intermediaries registered in various sections of the RUI shall be considered.

The withholding must be applied directly at the time of commission payment and in respect of all fees generated from brokerage activities, including any expense reimbursements or over-commissions conferred upon achieving predetermined (productive or technical) results.