In order to stimulate the payment of the outstanding fiscal obligations and taking into account the need to provide medicines, protective equipment, other medical devices or equipment and sanitary materials that can be used to prevent, limit, treat and combat COVID-19, the Romanian Government has adopted the Government Emergency Ordinance no. 33 from 26.03.2020 regarding certain economic fiscal measures and modification of certain normative acts, the following measures for supporting the business environment implemented during the state of emergency period:
Discounts for profit tax payers and taxpayers paying micro-entreprises income tax. What are the conditions.
1. Profit tax payers, regardless of their reporting and payment system, which pay the profit tax owed for the first quarter of 2020, respectively for the advance payment of the same quarter, up until 25 April 2020 inclusively, receive a discount computed on the corporate income tax due, as follows:
- 5% for large tax payers;
- 10% for medium tax payers;
- 10% for any other tax payers.
The same treatment applies to taxpayers who have opted for a financial year other than the calendar year and who have opted for the fiscal year to correspond to the amended financial year. These taxpayers benefit from the discount mentioned above if they pay the profit tax due for the quarter/ the advance on a quarterly basis, up until the reporting date, which should be between 25 April and 25 June 2020.
At the same time, the discount is granted to the taxpayers who fall under the Law no. 170/2016 regarding the tax on specific activities, for the profit tax for the first quarter of 2020 related to the activities that were performed and which do not for under the NACE codes related to the specific activities.
The relevant discount is included distinctly in the annual profit tax return.
2. Taxpayers paying micro-enterprises income tax benefit from a 10% discount calculated on the tax due for the first quarter of 2020, in case the payment of the tax is performed until 25 April 2020 inclusive;
Companies importing medicinal products, protective equipment, and other medical materials that could be used in the fight against COVID-19 will not efectivelly pay VAT to the customs authorities. What are the conditions.
During the state of emergency and in the next 30 days after the end of the state of emergency, the effective payment of VAT will not be performed to the customs authorities by taxable persons registered for VAT purposes that are importing medicinal products, protective equipment, other medical devices or equipment and sanitary materials which may be used in the prevention, limitation, treatment and control of COVID-19;
The VAT related to the abovementioned imports is reported by the importers in the VAT return both as tax collected and as deductible tax.
The emergency certificate will be issued based on an affidavit
Through the emergency certificate issued by the Ministry of Economy, Energy and Business Environment, it is ascertained, based on an affidavit, the decrease of revenues or income by at least 25% in March 2020, compared to the average of January and February 2020 or the partial or total interruption of the activity as a result of the decisions issued by the authorities during the decreed state of emergency.
Our dedicated team of attorneys & consultants may provide you with all the required assistance for Covid-19 tax related issues. Please do not hesitate to contact us for any aspects in connection thereof.
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