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Emergency ordinance no. 29 of 18 March 2020 regarding economic and fiscal-budgetary measures

In this issue:
Emergency ordinance no. 29 of 18 March 2020 regarding economic and fiscal-budgetary measures, published in the Official Gazette no. 230 of 21 March 2020

Local taxes

In 2020, the deadline for the payment of tax on buildings, land and means of transport is postponed from 31 March 2020 to 30 June 2020 inclusive. In addition, the deadline for granting bonuses for the advance payment of the tax on buildings, land and means of transport due for the full year by taxpayers, is postponed from 31 March 2020 to 30 June 2020 inclusive.

 

Corporate income tax with advance payments

The taxpayers applying the system of annual declaration and payment of corporate income tax, with quarterly advance payments, can perform quarterly advance payments for 2020 at the level of the corporate income tax resulted from the current quarter computation. This method will be applied for all quarters of fiscal year 2020.

For the taxpayers with fiscal year different than the calendar year, the abovementioned provisions apply for the advance payments due for the remaining quarters of the modified fiscal year ending in 2020, as well as for the computation of payments related to those quarters from the modified fiscal year which begin in 2020 and are included in the calendar year 2020.

 

Amendments to Emergency ordinance no. 6/2019 regarding tax facilities

Taxpayers who intend to benefit from the measures of restructuring budgetary debt, as per the provisions of Emergency ordinance no. 6/2019, and are bound to notify the tax authorities of their intention, may submit such notice of intention including in the period 1st of February 2020 – 31 July 2020 . Such taxpayers shall also contract the services of an independent expert for elaborating a restructuring plan and performing the prudent private creditor test.

Additionally, the deadline for filing the restructuring claim, following the fulfillment of the conditions set by Emergency ordinance no. 6/2019, has been extended to 30 October 2020.

 

Measures regarding accessory tax liabilities and enforcement of tax liabilities

Tax interest and late payment penalties shall not accrue with regard to principal tax liabilities that become due as of the date of entry into force of the ordinance and are not paid in the period when the state of emergency is in place, as well as for an additional 30-days after the end of the state of emergency. Such tax liabilities shall not be deemed outstanding, as per the provisions of the Tax Procedure Code.

In the aforementioned timeframe, tax authorities do not initiate enforcement measures in the form of garnishments for the recovery of budgetary liabilities, and all such existing garnishments are suspended, except for the cases where the recovery of budgetary liabilities is provided under court decisions issued in relation to criminal matters. All measures regarding the suspension of such garnishments are to be applied directly by credit institutions and other garnishees, without the need for any formalities from the tax authorities.

 

For more information, you may consult the Official Gazette no. 230 / 21 March, 2020 or you can contact us directly, in order to clarify any other questions.

 
Prepared by:
Miruna Enache – Partner, Tax and Law Department, Transaction Tax Leader
 
For additional information, please contact:
Alex Milcev – Partner, Tax & Law Leader Romania
 
Ernst & Young SRL
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