31 DECEMBER 2020
Taxation of interest paid to resident individuals

Dear customers,


In accordance with the Law on amending some normative acts no. 257 of 16.12.2020, in force since 01.01.2021, art.90 (1) of the Fiscal Code no.1163 / 1997 was amended.


In the context of that amendment, banks, savings and loan associations, as well as issuers of corporate securities withhold a tax of 3% of the interest paid to resident individuals.


Please note that in accordance with the provisions of paragraph (7) art.24 of the Law on the implementation of Titles I and II of the Fiscal Code, the taxation of interest paid to resident individuals will be made only for those calculated starting with January 1, 2021.


Thus, in order to facilitate the process of withholding income tax in 2021, the Bank decided to pay interest calculated for the previous period on January 1-10, 2021.


For the interests calculated and paid to the resident individuals starting with 01.01.2021, the Bank will withhold an income tax at the source of payment according to the provisions of art.90 (1) of the Fiscal Code no.1163 / 1997.