Amendments to Ordinance no. 33/2020 regarding tax reductions

10. September 2020 | Reading Time: 1 Min

Upon finalising the profit tax for the fiscal year, the relevant deduction is subtracted from the amount of annual corporate tax due (calculated after deducting any amounts representing tax credits, exemptions, etc.). The value of the reduction may not exceed the level of annual corporate tax due.

Taxpayers with a modified fiscal year who apply the actual figures system (as well as those who apply the prepayments system and who did not owe corporate tax for the first modified fiscal year) benefit from the incentives provided for by law in relation to the difference in corporate tax due at the end of the fiscal year (including that due between 26 December 2020 and 25 February 2021). Taxpayers who did not benefit from these reductions may submit rectification returns for the difference in profit tax due, as calculated at the end of the fiscal year in question.

The incentive also applies if the tax due is offset against the amount of corporate tax to be recovered from previous tax years.

Source: Emergency Ordinance no. 153/2020 on the establishment of fiscal measures to encourage the maintenance of/increase in equity, as well as the supplementation of various normative acts, published on 4 September 2020.

Tax Flash 10 September 2020
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