Main fiscal news in September 2024

1. Procedure for canceling outstanding budget obligations

Following the approval of Emergency Ordinance No. 107/2024 regarding the cancellation of certain budgetary obligations, a subject extensively covered here, the Ministry of Public Finance has adopted the procedure for canceling certain budgetary obligations, primarily aiming to regulate the methods by which taxpayers can benefit from the cancellation of outstanding fiscal obligations as of August 31, 2024, under specific conditions.

The procedure reiterates the scope of applicability of outstanding obligations, the categories of debtors, as well as the fiscal facilities they may benefit from.

Regarding the procedure for granting deferral of payment, the steps that a taxpayer must follow are summarized as:  

1. Submission of notification: Debtors who wish to benefit from the cancellation of budgetary obligations must submit a notification either at the tax authority's office, by mail, or through the online service "Virtual Private Space" (SPV). This step is not mandatory, but it is beneficial as it is followed by a tax authority analysis that determines with certainty the amounts subject to deferral. Additionally, submitting the notification can suspend enforcement and other procedures until the request is resolved.

2. Submission of the application: Debtors request the cancellation of budgetary obligations by an application also submitted through the above mentioned ways. When submitting the application, taxpayers must meet all eligibility conditions.

Both the notification of the intention to benefit from the cancellation of budgetary obligations and the request for cancellation of budgetary obligations shall be submitted via Form D11 “Call for the cancellation of budgetary obligations/ NOTIFICATION on the intention to benefit from the cancellation of budgetary obligations”, until 25 November 2024.

3. Tax analysis: Within 5 days of submitting the application, the authorities analyze the taxpayer's fiscal situation and issue, as applicable, the decision to cancel certain budgetary obligations or the decision to reject the request for cancellation of budgetary obligations.

4. Cancellation and reimbursement of fiscal obligations: The accessory fiscal obligations for which the cancellation decision has been issued are removed from the debtor’s fiscal records. The accessory fiscal obligations that meet the conditions for granting tax facilities but have been settled starting September 6, 2024, will be refunded to the eligible taxpayer.

The procedure was introduced by Order No. 5521/2024, published in the Official Gazette No. 944 on September 19, 2024.

2. Additions to Emergency Ordinance 107/2024 on tax amnesty

Through Emergency Ordinance No. 112 of September 23, a series of amendments were made to the tax amnesty introduced by Emergency Ordinance No. 107/2024. One of the most significant additions refers to the management of the tax obligations of debtors in insolvency. According to the new regulations, judicial or special administrators must obtain the approval of creditors in order to benefit from the tax facilities stipulated in Emergency Ordinance 107/2024.

Additionally, the tax amnesty has been extended to include ex officio tax assessment decisions regarding the income of individuals from 2019 and 2020. The principal obligations established by these decisions can be settled by paying the main amount, and the accessories will be canceled if the payments are made within the established deadline.

Another significant aspect introduced by Emergency Ordinance 112/2024 concerns the accessories related to certain main budgetary obligations, which include state aid that must be recovered or funds owed to the European Union budget, as well as other budgetary obligations such as:

• those that are the subject of criminal proceedings;

• established by final criminal rulings;

• representing damages that fall under Article 10 of Law No. 241/2005 for the prevention and combating of tax evasion.

Finally, the ordinance also regulates the situation of debtors with payment installments. Thus, those who wish to benefit from amnesty during the installment period must comply with the conditions set for completing the installments, as well as for the application of accessory cancellations.

The Emergency Ordinance No. 112/2024 regarding the amendment and completion of certain legislative acts was published in the Official Gazette, Part I No. 959 on September 25, 2024.

3. Romania's reciprocity declaration to the United Kingdom of Great Britain and Northern Ireland

Starting from August 22, 2024, Romania's Reciprocity Declaration to the United Kingdom of Great Britain and Northern Ireland came into effect. This makes it possible to request the reimbursement of value-added tax (VAT) related to imports of goods, purchases of goods, and services carried out in Romania by taxable persons established in the United Kingdom, in accordance with the provisions of Directive 13.

4. Extension of the application of tax facilities for research and development and for taxpayers paying minimum turnover tax

New amendments to the Fiscal Code have been introduced, impacting the minimum turnover tax, specifically targeting taxpayers who apply the additional deduction for research and development activities. These taxpayers can reduce the minimum turnover tax by the amount obtained by applying a 16% rate to the additional deduction of 50% of eligible expenses for these activities. This reduction applies up to the amount of the minimum turnover tax due.

The newly introduced provision applies starting from the fiscal year 2024 or the modified fiscal year beginning in 2024.

The amendments to Law No. 227/2015 regarding the Fiscal Code were introduced through Emergency Ordinance No. 115/2024, published in the Official Gazette No. 970 on September 26, 2024.

5. Procedure for communicating taxpayer data and amounts redirected by the tax authority

The procedure regarding the communication by the tax authority of taxpayer identification data and the amounts redirected from the tax owed to beneficiary entities, based on the taxpayer's agreement, has been approved.

This regulation establishes a legal framework that allows tax authorities to provide beneficiaries, such as non-profit entities, with information on the taxpayer's name and surname/denomination, tax identification code, and the amounts redirected by the taxpayer.

Additionally, the ordinance specifies the model and content of specific forms that will be used in this process. This initiative aims to improve the management of tax resources and support organizations that rely on these fund redirections.

The approval of the Procedure was introduced by Order No. 6228 dated September 18, 2024, published in the Official Gazette No. 940 on September 18, 2024.

6. Nominal value of meal, cultural, and nursery vouchers in the second semester of 2024 and the first semester of 2025

The indexed nominal values of a meal voucher, cultural voucher, and nursery voucher, starting from October 2024, have been published as follows:

• Meal voucher: 40.04 lei/voucher – valid until March 2025;
• Cultural vouchers: 220 lei/month, or a maximum of 440 lei/event – valid until March 2025;
• Nursery vouchers: 660 lei – valid until March 2025.

The indexed nominal values were established through:

Order No. 4.679/2.024/2024, published in the Official Gazette No. 956 on September 24, 2024,
Order No. 4.680/3.219/2024, published in the Official Gazette No. 974 on September 27, 2024, and
Order No. 5339 dated September 13, 2024, published in the Official Gazette No. 975 on September 27, 2024.

7. Exemption from import duties and VAT exemption for goods belonging to persons fleeing the military aggression between Ukraine and Russia

Order No. 4.233 of August 27, 2024, was introduced in response to European Decision 2024/775, which must be complied with by the Romanian state. To benefit from these tax exemptions, it is necessary to follow the procedure implemented by the authorities and meet several cumulative conditions:

• Individuals who have made such imports can benefit from the exemption starting from September 9, 2024.

• The list of goods that fall into this category, along with the application model that must be completed, is included in Annexes 1 and 2 of Order No. 4.233/2024.

The regulations were introduced through Order No. 4.233 of August 27, 2024, for the implementation of Decision (EU) 2024/775, published in the Official Gazette No. 907 on September 9, 2024.

Disclaimer

The information contained in this newsletter is intended to give you an overview of new legislation; the newsletter does not contain a comprehensive analysis of each topic. For further information on the topics covered please contact us. No responsibility is accepted for decisions or omissions following the use of the content of this newsletter. 

Crowe România