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Romania: New Tax Amnesty Announced by Government

Romania: New Tax Amnesty Announced by Government

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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:

  1. 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.
  2. 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.
  3. 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.
  4. 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

Romanian Knowledge Partner

Țuca Zbârcea & Asociații is a full-service independent law firm, employing cross-disciplinary teams of lawyers, insolvency practitioners, tax consultants, IP counsellors, economists and staff members. It also operates a secondary law office in Cluj-Napoca (Romania), and has a ‘best-friend’ agreement with a leading law firm in the Republic of Moldova. In addition, thanks to the firm’s dedicated Foreign Desks, the team provides the full range of services to international investors seeking to gain a foothold or expand their existing operations in Romania. Since 2019, the firm and its tax arm are collaborating with Andersen Global in Romania.

Țuca Zbârcea & Asociaţii is providing legal services in every aspect of business, covering all major areas of practice: corporate and M&A; litigation and international arbitration; corporate tax; public procurement; TMT; employment; insurance; banking and finance; capital markets; competition; healthcare and pharmaceutical; energy and natural resources; environmental; intellectual property; real estate; regulatory legal services.

Țuca Zbârcea & Asociaţii is a First-Tier law firm in all international legal directories and a multiple award-winning law firm both locally and internationally. It received the CEE Deal of the Year Award (DOTY Awards 2021) and the Law Firm of the Year Award: Romania (IFLR Europe Awards 2021). 

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