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Emergency Ordinances regarding some indemnities and incentives

In this issue:

Emergency Ordinances no. 32, 33 and 35 of 26 March 2020 regarding certain fiscal measures and amendment of certain legal acts, published in the Official Gazette no. 260 of 30 March 2020

Emergency Ordinance no. 32 of 26 March 2020 (Official Gazette no. 260/30 March 2020)

Parental indemnity

The new provisions clarify the relevant tax treatment of this indemnity, in the sense that it is subject to income tax and all social charges.


Indemnities for other professionals

Professionals regulated by the Civil code who are not employers or individuals having other types of contracts provided by the law as well as individuals earning solely income from property rights and who cease their activity totally or partially during the emergency state period benefit of an indemnity equal to 75% of the average gross national salary for the year 2020 (i.e., RON 5429).

The indemnity shall be subject to income tax, social security contribution and health fund contribution.

Withholding, computation, declaration and payment obligations shall be undertaken by the employer, where the procedure will be established via a separate Order.


Emergency Ordinance no. 33 of 26 March 2020 (Official Gazette no. 260/30 March 2020)

Incentive granted for the tax due


The taxpayers applying the corporate income tax regime, irrespective of the declaration and payment system, which pay their tax due for the first quarter of 2020, respectively the advance payment related to the same quarter, by the due date of 25 April 2020 inclusive, benefit from a reduction of the tax due as following:

     a) 5% for the large size taxpayers;

     b) 10% for the medium size taxpayers;

     c) 10% for the other categories of taxpayers.


The above incentives apply also for taxpayers with fiscal year different than the calendar year, if they pay the tax due by the due date between 25 April 2020 – 25 June 2020.

In addition, the above provisions apply also for the taxpayers which fall under the Law 170/2016 regarding the specific tax on certain activities, for the payment of corporate income tax related to the first quarter of 2020, computed for the activities performed, others than the ones corresponding to the NACE codes mentioned in the law.

For the payment of microenterprise income tax related to the first quarter of 2020, by 25 April 2020 inclusive, the taxpayers benefit of 10% reduction applied on the microenterprise income tax due for the respective quarter.

The taxpayers applying the above provisions, compute the corporate income tax / microenterprise income tax payable by decreasing the tax due with the applicable incentive.

For the corporate income tax payers, the incentive granted will be declared on a separate row in the annual corporate income tax return (Form 101).


Payment of VAT for certain imports of goods

During the state of emergency and 30 days after it ends, payment of VAT to the customs authorities for imports of goods included in the Annex to the Emergency Ordinance (e.g. medicines, equipment, devices and materials required in the context of Covid-19 pandemic) shall not be performed. VAT related to these imports shall be recorded in the VAT return as output VAT, as well as input VAT to the extent that conditions for the deduction of input VAT are met.


Emergency Ordinance nr. 35/2020 regarding the method of issuing and the validity of vacation vouchers, in the context of the epidemiological situation related to the spread COVID – 19

Vacation vouchers related to the year 2020 shall be issued solely electronically.

Furthermore, the validity period for the vacation vouchers issued during March 2019 – December 2019, regardless of the issuance method, is extended until 31 May 2021.


For more information or details on the above you may consult the Official Gazette no. 260 / 30 March 2020 or you could 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
Bucharest Tower Center Building,
22nd Floor, 15-17 Ion Mihalache Blvd.,
Sector 1, 011171, Bucharest, Romania
Tel: (40-21) 402 4000, Fax: (40-21) 310 7124
Email: office@ro.ey.com
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