Emergency Government Ordinance no. 99/2020 regarding some fiscal measures, changes to certain normative acts and the extension of certain deadlines
In this issue:
Emergency Government Ordinance no. 99/2020 regarding some fiscal measures, changes to certain normative acts and the extension of certain deadlines, published in the Official Gazette no. 551 of 25 June 2020
Specific Tax on certain activities
- Exemption from specific tax for the year 2020 for a period of 90 days starting with 25 June 2020
Taxpayers paying the specific tax on certain activities, for the year 2020, do not owe the specific tax for a period of 90 days calculated starting with 25 June 2020.
For the application of these provisions, the taxpayers recalculate, accordingly, the specific tax established for the year 2020, by dividing the annual specific tax by 365 calendar days and multiplying the resulting value with the difference between the number of 365 calendar days and the number of 90 calendar days.
This measure is cumulated with the facility provided by GEO no. 48/2020. Thus, taxpayers which had their activity suspended, totally or partially, during the state of emergency, for the recalculation of the specific tax, should subtract also the period in which they stopped their activity, totally or partially, as a result of the state of emergency. Therefore, the taxpayers can benefit from the exemption from paying the specific tax for a total period of up to 150 days during the year 2020.
In addition, the declaration and payment of the specific tax for the first semester of 2020 shall be made until 25 October 2020 inclusively.
- VAT exemptions for the supply and purchase of personal protective masks and medical ventilators for intensive care
Supplies of individual protective masks and medical ventilators for intensive care, necessary for the establishment of rescEU - the reserve of capacities of the European Union, made to the public institutions responsible for the establishment of this reserve, until October 1st, 2020, are VAT exempt with credit. The supplier justifies the VAT exemption with the own liability statement regarding the destination of the goods, made available to him by the beneficiary institution, signed by its legal representative, at the latest at the time of the supply.
Imports and intra-Community acquisitions of personal protective masks and medical ventilators for intensive care, carried out by the responsible public institutions, for the establishment of rescEU - the reserve of capacities of the European Union, until 1 October 2020, are VAT exempt with credit. The VAT exemption for the import of goods is applied based on the own liability statement of the beneficiary institution, signed by its legal representative, to besubmitted to the competent customs body at the time of the import.
Corporate income tax / micro-enterprise tax
- 10% bonification for corporate income tax payers / micro-enterprise tax
The taxpayers applying the corporate income tax regime, regardless of the declaration and payment system, as well as taxpayers applying the micro-enterprise tax regime, which pay the quarterly tax due / quarterly advance payment by the due dates, 25 July 2020 inclusively, for the second quarter, respectively 25 October 2020 inclusively, for the third quarter, shall benefit of a 10% bonification calculated on the quarterly tax due / quarterly advance payment (GEO no. 33/2020 provided the bonification only for corporate income tax payers and not also for the taxpayers applying the micro-enterprise regime).
The provisions regarding the 10% bonification for the taxpayers applying CIT regime, apply accordingly also for the taxpayers who have opted for a fiscal year different from the calendar year. These taxpayers shall benefit from the bonification if they pay the quarterly tax due / quarterly advance payment until the due date between 25 April and 25 June 2020 inclusively, respectively, until the due date included, as the case may be, between 26 June and 25 September 2020 inclusively and between 26 September and 25 December 2020 inclusively.
The provisions regarding the 10% bonification calculated on the tax due shall be applied accordingly by the taxpayers falling under Law no. 170/2016 regarding the specific tax on certain activities, for the corporate income tax / quarterly advance payment related to the first quarter, respectively for the second and third quarters of 2020, determined for the activities carried out, other than the ones corresponding to the NACE codes provided by law.
- Provisions regarding enforcement
The suspension or non-commencement of forced execution is extended, by establishing the seizure, respectively by summons and sale at public auction, of the budgetary liabilities, until 25 October 2020, except for the recovery of budgetary liabilities provided under definitive court decisions issued in criminal matters, where such liabilities have arisen as a result of committing criminal offences, as well as of State aids whose recovery has been ordered by a decision of the European Commission / State aid provider or a national court.
- Provisions regarding late payment charges
For all overdue and unpaid tax obligations, interest and late payment penalties shall not be computed until 25 October 2020 inclusively.
For the late payment of the installments related to rescheduled tax liabilities not paid until 25 October 2020 inclusively, no interest and penalties shall be computed.
The period during which the accelerated VAT refund procedure, provided by the Emergency Government Ordinance no. 48/2020, applies is extended until 25 October 2020.
Feel free to reach out to us should you like to receive detailed information on the provisions brought by this normative act as well as its applicability to your specific case.
For more information or details on the above you may consult the Official Gazette no. 551/25 June 2020, or you could contact us directly in order to clarify any other questions.