Brussels, 17/10/2014 (Agence Europe) - On Thursday 16 October, the European Commission sent Romania a reasoned opinion asking it to amend its rules on the taxation of interest income because they restrict the free provision of services and the free movement of capital in the EU single market. Currently, resident legal entities can deduct the business expenses related to generating interest income so that only their net income is taxed. However, legal entities established in another EU/European Economic Area state which do not have a permanent establishment in Romania cannot benefit from such a deduction, and are taxed more heavily on their gross interest income obtained directly from Romania. The Commission has given Romania two months in which to provide a satisfactory response, failing which it may decide to refer the country to the European Court of Justice. (EL)