Legal & Tax Alerts

The Romanian Government has adopted new tax measures in the COVID-19 context

On 30.03.2020, the Emergency Ordinance no. 33/2020 regarding some fiscal measures and the modification of some normative acts[1] (“GEO 33/2020“) through which the Romanian Government grants a new series of fiscal facilities, in the COVID-19 context.

The measures adopted through GEO 33/2020 are:

>> Granting tax incentives for prepayment of the corporate income tax , until 25 April 2020, as follows:

» 5% for large taxpayers;
» 10% for middle taxpayers;
» 10% other categories of taxpayers;

>> Granting an incentive of 10% for microenterprises which pay the income tax for the 1st quarter of 2020, until 25 April 2020.

The incentives can also be granted for those taxpayers who have opted for a different fiscal year than the calendar year, but only if the payment of the due tax is made between 25 of April and 25 of June 2020.

The taxpayers who benefit from these facilities will determine the corporate tax income/income tax in microenterprises case, by deducting from the tax due the applicable incentive.

>> Deferment of VAT payment to the customs authorities, for taxpayers registered for VAT purposes, who import medicines, protective equipment, other medical devices or equipment and sanitary materials that can be used to prevent, limit, treat and combat COVID-19.

This measure is valid during the state of emergency period and 30 days after from the date of the cessation of the state of emergency, and the value-added tax related to these imports is evidenced by the importers, both as tax collected and as deductible tax in the statement of VAT, form D300.

 

[1] Official Gazette of Romania, Part I, no. 260 dated 30.03.2020.

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