On Friday, 8 May 2020, a press release was published on the website of the Romanian Ministry of Public Finance stating that the government had approved the tax amnesty proposed by this ministry. The amnesty includes the waiver of interest, penalties and other charges payable by taxpayers, provided they pay the principal by 15 December 2020.
According to the press release, the tax facilities are aimed at all taxpayers with outstanding debts as of 31 March 2020 (natural persons, legal entities, natural persons carrying out economic activities or liberal professions, entities without legal personality, public institutions, etc.).
The press release refers to the following 4 types of tax facilities:
- Cancellation of interest, penalties and all other charges related to the main fiscal obligations outstanding on 31 March 2020 inclusive in the case of taxpayers which, on this date, have both additional fiscal obligations and main fiscal obligations.
- Cancellation of interest, penalties and all other charges related to the main fiscal obligations additionally declared by the debtor by correcting the tax return and due before 31 March 2020 inclusive.
- Cancellation of interest, penalties and all other charges related to the main fiscal obligations due before 31 March 2020 inclusive if on this date the taxpayers only have additional charges recorded in their balance and the main fiscal obligations have been paid.
- Cancellation of interest, penalties and all other charges related to the main fiscal obligations due before 31 March 2020 inclusive, established by a tax assessment notice issued after a tax inspection or verification of the personal tax situation which is on-going on the date the emergency ordinance comes into force.
The implementation of these facilities depends on the fulfilment of certain conditions regarding the taxpayer’s tax situation. Provided that all these conditions are met, the taxpayer can use all 4 tax facilities mentioned above.
The local public administration authorities are not required to implement these facilities. However, they may opt to implement them if the local council passes a resolution to implement the provisions and the applicable procedure.
By Monica Colt and Carmen Mazilu, Associates, Noerr