Romania: Amendments to Various Tax Relief Schemes and Other Tax Amendments

Romania: Amendments to Various Tax Relief Schemes and Other Tax Amendments

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On 29 March 2021, Emergency Government Ordinance 19/2021 (“EGO 19”) implementing certain fiscal measures was published in the Official Gazette no. 315/29.03.2021.

Of the most important amendments introduced by EGO 19, we note the following:

  1. Starting on 1 April 2021, taxpayers who are liable to pay the special tax on certain HORECA activities are exempt from said tax for a period of 90 days.
  2. The application of the profit tax and income tax incentives related to early education are suspended between 1 April 2021 and 31 December 2021. During this time, payers of profit tax will treat the relevant expenses as part of their social expenditure and will apply the appropriate deduction rules.
  3. The recapitulative statement (VAT form 390) will no longer include intra-community transactions with the United Kingdom of Great Britain and Northern Ireland, except for transactions involving the transport of goods to/from Northern Ireland.
  4. The term for notifying the intention to benefit from the tax debt restructuring scheme provided by GO 6/2019 is extended to 30 September 2021. The deadline for submitting the restructuring application is extended to 31 January 2022.
  5. The simplified VAT refund procedure (with a subsequent tax audit) will continue to apply until 31 January 2022 for all taxpayers if the relevant conditions are met.
  6. The tax amnesty scheme regarding the cancellation of late payment interest and penalties related to budgetary (including tax) liabilities outstanding as at 31 March 2020 will continue to be available until 31 January 2022.
  7. The tax amnesty mentioned above will also be available to taxpayers who are currently undergoing a tax audit if they submit their application by 31 December 2022, or within 90 days from the moment the tax assessment decision is served if the latter term falls after 31 December 2022.
  8. Finally, the tax amnesty will also be available to taxpayers who are currently running tax payment plans for qualifying principal tax debts. The amnesty applies if the payment plans are finalised by the time the relevant application is submitted, but no later than 31 January 2022.
  9. Taxpayers will be able to apply for the simplified tax debt rescheduling procedure (for a maximum of 12 months without collateral) until 30 September 2021.

By Carmen Mazilu, Associate, Noerr