Simplified instalment scheme for certain tax liabilities and other measures

11 November 2020 | newsletters

Several fiscal measures were recently introduced by Emergency Ordinance No. 181/2020 on certain economic and fiscal budgetary measures ("GEO 181/2020").

The simplified instalment scheme, which is the most important of the changes brought by GEO 181/2020, provides that:

  • for those principal and ancillary tax liabilities due on and after 16 March 2020, taxpayers can apply for an instalment scheme for a period of up to 12 months;
    this scheme is available upon the taxpayers' request (conditions apply);
  • to qualify, taxpayers must apply by 15 December 2020 or within 30 days from being officially served with a tax assessment decision, issued following a tax audit which had been ongoing when GEO 181/2020 entered into force;
    there is no need to submit any collateral in order to benefit from the instalment scheme;
  • once the instalment plan is approved, the applicant may submit a maximum of two requests to amend the initial plan;
    an interest rate of 0.01 % per day is due for the duration of the instalment plan; failure to pay the instalments on due time will result in a 5 % penalty.

The implementing instructions for the new instalment scheme are expected by mid-November.

Among the other measures introduced by GEO 181/2020 the following are also of note:

  • the special tax for certain activities regulated by Law 170/2016 is not due for the period of 26 October – 31 December 2020;
  • until 2 December 2020, local authorities may decide to reduce the annual property tax on buildings, subject to taxpayers meeting certain conditions;
  • the economic operators' obligation to use electronic fiscal cash registers was suspended until 31 December 2020;
  • taxpayers may now notify their intention to restructure their budgetary liabilities according to GO 6/2019, also between 1 November 2020 and 31 March 2021; relevant restructuring applications may be submitted by 30 June 2021, at the latest;
  • the costs of testing employees for COVID-19 incurred by employers are not considered a benefit in kind for the respective employees;
  • until 25 October 2020, tax liabilities due on or after 21 March 2020 did not bear any late payment interest and penalties, nor were they subject to enforcement. GEO 181/2020 extends this term to 25 December 2020. The statutory stay of enforcement also extends to other budgetary liabilities;
  • the VAT refund procedure subject to a subsequent audit, provided by art. XI of GEO 48/2020, shall apply until 25 January 2021.

GEO 181/2020 was published in the Official Gazette No. 988 of 26 October 2020, the date on which it entered into force.

Theodor Artenie

Managing Director Tax

T: +40 21 319 67 90
t.artenie@schoenherr.eu

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