Coronavirus update no. 3/2020 – Budgetary and Tax measures published

In the Official Gazette no. 230 of March 21, 2020 was published Government Emergency Ordinance no. 29/2020 regarding certain economic, budgetary and tax measures, measures adopted in order to mitigate the negative repercussions of the Coronavirus pandemic on the economy. We present below the main provisions of this Ordinance, specifying that some of the measures were previously announced by the authorities through press releases and we have presented them through the Updates no.1 from March 17, 2020 and no.2 from March 18, 2020 on the subject.

Measures regarding the Tax Code

The first payment term for some local taxes, specifically building tax, land tax and tax on means of transport, is postponed from March 31, 2020 to June 30, 2020. If the tax is paid in full by June 30, 2020, the usual tax bonus set by the Local Council is also applicable.

The taxpayers who apply the corporate income tax prepayment system and who are facing a decrease in their activity in 2020, have the alternative to compute the quarterly advance payments based on the actual quarterly result in the current year (and not based on the profit of the previous year). Those how opt for this computation method have to use it for all the quarters of 2020.

Measures regarding the Tax Procedure Code

For taxes due after March 21, 2020 and unpaid until their deadline, late payment interest and penalties will not be computed by the tax authorities and such taxes will not be considered as outstanding. This measure applies to all taxes due to the State Budget, such as VAT, corporate income tax, micro-enterprise tax, payroll taxes, social security contributions, etc.

In addition, any foreclosures and garnishments for debts due to the State Budget will be suspended or will not start, with the exception of the amounts decided by Courts in criminal matters.

These provisions will apply for the period of the state of emergency and another 30 days after it is over (state currently declared until April 15, 2020).

NOTE: The measure previously announced by ANAF in a press release regarding the postponement for the submission deadline of the tax returns from March 25 to April 25 was NOT adopted by the Government. Therefore, the submission deadline of March 25 is still applicable.

Other provisions

The present Emergency Ordinance also changes certain deadlines mentioned by the GO 6/2019 regarding some tax reliefs.

Thus, the notification of the intention to restructure the tax obligations can be made until July 31, 2020, the previous deadline being March 31, 2020. Also, the deadline for submitting the restructuring request becomes October 30, 2020, as opposed to July 31, 2020.

More details on the conditions, the restructuring procedure or the initial form of this legislation for regarding the granting tax reliefs, may be found in Newsletter 11 from 30.09.2019 and Newsletter 4 from 05.03.2020.

Disclaimer

The information in this newsletter is intended to give you an overview of legislative news; the newsletter does not contain a complete analysis of each topic. For more information about the subjects presented, please contact us. We do not accept any responsibility for decisions or omissions followed by the use of the content of this newsletter. All Boscolo&Partners newsletters are available at the following address: http://www.crowe.ro.

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