New tax measures, including tax amnesty, adopted in Romania in response to COVID-19
New legislation, including amendments to the tax legislation and tax measures to support taxpayers during the COVID-19 pandemic, have been recently introduced in Romania.
Below is a brief list of the most important provisions:
- Profit tax payers and micro-companies, which pay their respective taxes no later than 25 July 2020 for Q2 and 25 October 2020 for Q3, benefit from a 10 % reduction of their respective liabilities;
- Starting in 2021, a 10 % reduction will be granted for the payment of annual income tax, social security contributions and health insurance contributions declared in the Single Tax Return; the conditions for applying the reduction will follow;
- The tax risk analysis of taxable persons who are Romanian companies will be performed after VAT registration;
- The deadline for submitting the Single Tax Return is extended from 25 May 2020 to 30 June 2020;
- A 5 % reduction is granted for the settlement of the income tax, social security contribution and health insurance contribution declared in the Single Tax Return for 2019 if the settlement is performed no later than 30 June 2020;
- If the tax liabilities reported in the Single Tax Return for 2019 are settled no later than 30 June 2020, an additional 5 % reduction is granted for Single Tax Returns submitted electronically;
- Taxpayers can decide to redirect part of their income tax towards non-profit organisations and religious institutions by 30 June 2020;
- Incentives/bonuses granted by employers to employees who have carried out activities involving direct contact with people and who were thus exposed to the risk of infection with COVID-19 during the state of emergency are exempt from all social security contributions;
- By decision of the local authorities, a reduction of property taxes for non-residential buildings may apply in certain conditions;
- A tax amnesty is introduced for the cancellation of interest, penalties and other ancillary liabilities related to principal budgetary obligations outstanding as at 31 March 2020 under the following conditions:
- the applicant settles all principal liabilities outstanding as at 31 March 2020 before submitting the request for the cancellation of the qualifying liabilities;
- the applicant settles all principal budgetary and ancillary liabilities due between 1 April 2020 and the date of submitting the request to cancel the qualifying liabilities by the time the request is submitted;
- the applicant submits all tax returns due as per their tax profile by the date the request to cancel the qualifying liabilities is submitted;
- the applicant submits the request to cancel the qualifying liabilities no later than 15 December 2020.
The above measures are included in Law No. 54/2020 and in Government Emergency Ordinance No. 69/2020, published in the Official Gazette No. 396 of 15 May 2020 and No. 393 of 14 May 2020.