The authorities recently introduced various tax facilities (e.g. the payment in instalments of tax obligations) and amended certain deadlines.
- Payment in instalments
Fiscal obligations with a maturity date/payment deadline falling after the date of the declaration of the state of emergency and still unpaid by the date of issue of the tax certificate can now be paid in instalments over a maximum period of 12 months.
In order to benefit from the payment in instalments facility, taxpayers must cumulatively meet the following conditions:
- They submit their applications for this facility by 15 December 2020
- They are not in a state of bankruptcy/dissolution
- They do not have any outstanding fiscal obligations on the date of declaration of the state of emergency that are still unpaid by the date of issue of the tax certificate
- They are not held liable under the insolvency legislation/jointly and severally liable under the Fiscal Procedure Code (the condition is deemed to have been met if the amount has been paid)
- They have submitted all of their tax returns by the date of issue of the tax certificate
Tax liabilities arising as a result of a tax inspection that is still ongoing on the date of entry into force of these legislative amendments may also be paid in instalments, irrespective of the period under inspection by the authorities.
Payment in instalments is not available for tax obligations which:
- were the subject of a payment in instalments facility that lost its validity
- have a due date/payment deadline after the date of issue of the tax certificate
- are suspended or are subject to the compensation procedure on the date of issue of the tax certificate
- are less than RON 5,000 in the case of legal entities, or RON 500 in the case of individuals
The following interest charges and penalties relating to payment in instalments facilities apply:
- Interest at 0.01% per day starting 26 December 2020, for each day of delay
- A late payment penalty of 0.01% per day, to be applied until the date of issue of a payment in instalments decision
- A late payment penalty of 5% of of the current installment
- A penalty of 5% of the amount still unpaid in the event that the payment in instalments facility loses its validity
- Other incentives
- No tax on specific activities (HoReCa) will be due for the period 26 October 2020-31 December 2020
- Local authorities may award reductions to building tax due for the year 2020
- The obligation to connect electronic cash registers to the ANAF server has been delayed until 31 December 2020
- Debtors wishing to restructure their budgetary obligations are now also able to notify the relevant tax authority to this end during the period 1 November 2020-31 March 2021, and requests for restructuring can be submitted until 30 June 2021
- Expenses relating to tests carried out for SARS-CoV-2 are deductible for freelancers and do not constitute taxable salary income (i.e. they are not subject to income tax and social contributions)
- The period during which no interest charges and penalties apply for debts due as of 21 March and during which enforced collection is suspended or not initiated has been extended until 25 December 2020
- The deadline for VAT refunds with a subsequent tax audit has been extended until 25 January 2021
Source: Emergency Ordinance no. 181/2020 regarding various fiscal and budgetary measures, the modification and supplementation of various normative acts, and the extension of various deadlines.
