A. A Romanian company, Story SRL, generated 3 permanent establishments in 3 countries. All the information needed is presented below.

	Romania	Neverland	Dreamland	NightmareLand
Revenues	2,000,000	400,000	600,000	400,000
expenses	1,200,000	100,000	400,000	250,000
Advantage	800,000	300,000	200,000	150,000
Profit tax rate	16%	10%	5%	30%

Compute the profit tax payable in Romania (also showing the tax credit, if any available for the 3 permanent establishments)? (5 marks)

What is a permanent establishment? (1 mark)

B. A Romanian company, Story SRL, has 4 shareholders for which you have the relevant information presented below. In May 2020, Story SRL pays the following dividends:

	Shareholder	Dividend paid	Shares (%)	Years of holding
1	Mielu	40,000	20%	2
2	sheep	50,000	25%	1
3	SC Stana SRL	100,000	50%	3
4	SC Pasunea SRL	10,000	5%	1

Compute the income tax on dividends payable for all the shareholders. 4 marks