Suspension Of Increases And Delay Penalties Of The Fiscal Obligations Due Between 21.03.2020 – 25.10.2020. Bonuses On The Payment Of Tax Obligations

APPLICABLE LEGISLATION

  1. Government Emergency Ordinance no. 29/2020 (“GEO no. 29/2020”) regarding some economic and fiscal-budgetary measures, published in the Official Gazette of Romania, Part I, no. 230 of March 21, 2020;
  2. Government Emergency Ordinance no. 33/2020 (“GEO no. 33/2020”) regarding some fiscal measures and the amendment of some normative acts, published in the Official Gazette of Romania, Part I, no. 260 of March 30, 2020;
  3. Government Emergency Ordinance no. 90/2020 (“GEO no. 90/2020”) for the amendment of the Government Ordinance no. 6/2020 on the establishment of fiscal facilities, as well as for the amendment of some normative acts, published in the Official Gazette of Romania, Part I, no. 459 of May 29, 2020;
  4. Government Emergency Ordinance no. 99/2020 (“GEO no. 99/2020”) regarding some fiscal measures, the modification of some normative acts and the extension of some terms, published in the Official Gazette of Romania, Part I, no. 551 of June 25, 2020.

According to art. VII para. (1) of GEO no. 29/2020, for fiscal obligations due starting with March 21, 2020 (date of entry into force of the ordinance) and unpaid are not calculated and are not due interest and penalties for delay according to the Fiscal Procedure Code, approved by Law no. 207/2015. According to the following paragraph, these fiscal obligations are not considered outstanding fiscal obligations.

The basic form of art. VII para. (3) of GEO no. 29/2020 provided that the enforcement measures are suspended or not started by garnishment the budget receivables, except for the forced executions that are applied for the recovery of the budget receivables established by court decisions pronounced in criminal matters. Measures to suspend enforcement by seizing the traceable amounts representing income and cash are applied, by the effect of the law, by credit institutions or third parties seized, without other formalities from the fiscal authorities.

By GEO no. 99/2020, the above provision has been amended as follows: enforcement is suspended or not started by garnishment the budget receivables, except for the forced executions that are applied for the recovery of the budget receivables established by court decisions pronounced in criminal matters, as well as of State aid whose recovery has been ordered by a decision of the European Commission / State aid provider or a national court. Measures to suspend enforcement by garnishment of traceable amounts representing income and cash are applied, by the effect of the law, by credit institutions or other third parties seized, without other formalities from the fiscal authorities.

In its initial form, GEO no. 29/2020 provided that the term at which these transitional provisions cease (determined by the Covid-19 pandemic) is 30 days from the cessation of the state of emergency (therefore, theoretically on June 15, 2020).

By GEO no. 90/2020 entered into force on May 29, 2020, this term was extended until June 25, 2020 inclusive, and by GEO no. 99/2020 entered into force on June 25, 2020, the same term was extended until October 25, 2020 inclusive.

Another substantial change brought by GEO no. 99/2020 is the one referring to the bonuses provided by art. 1 of GEO no. 33/2020, which provides in the updated form for taxpayers paying income tax, regardless of the system of declaration and payment, who pay the tax due for the first quarter of 2020, respectively for the advance payment for the same quarter, until the due date April 25, 2020 inclusive, a bonus calculated on the income tax due, as follows:

5% for large taxpayers;

10% for medium taxpayers;

10% for other taxpayers who do not fall into either of the above two categories.

Taxpayers paying income tax, regardless of the declaration and payment system, as well as taxpayers paying income tax to micro-enterprises, which pay the tax due quarterly / quarterly advance payment by the due dates, July 25, 2020 inclusive, for the second quarter, respectively 25 October 2020 inclusive, for the third quarter, benefits from a 10% bonus calculated on the tax due quarterly / quarterly advance payment.

Taxpayers who have opted, in accordance with the accounting legislation in force, for a financial year other than the calendar year, if they pay the tax due quarterly / quarterly advance payment by the due date between April 25 and June 25, 2020 inclusive, benefit from the same facilitation and, respectively, if it pays the tax due quarterly / quarterly advance payment by the due date, as the case may be, between June 26 and September 25, 2020 inclusive and between September 26 and December 25, 2020 inclusive.

Likewise, the facilitation is applicable to taxpayers who are taxpayers specific to certain activities, even if they carry out activities other than those corresponding to the following NACE codes:

– 5510 (Hotels and similar accommodation);

– 5520 (Accommodation facilitations for holidays and short periods);

– 5530 (Caravan parks, campsites and camps);

– 5590 (Other accommodation services);

– 5610 (Restaurant);

– 5621 (Catering activities for events);

– 5629 (Other food services n.c.a.);

– 5630 (Bars and other beverage service activities).

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