Emergency Ordinance no. 181/2020
Emergency Ordinance no. 181/2020 – a simplified mechanism for payment rescheduling and extension of some of the payment terms. In force since 26th October, 2020
The simplified rescheduling mechanism will be accessible only after the necessary implementing rules and document models have been published.
Please find below a summary of the main changes:
EXTENSION OF TERMS
• Companies that have due tax debts starting with March 31, 2020 do not pay interest and penalties for delay , until December 25, 2020 inclusive.
• The enforcement measures are suspended or not started by seizing the budget receivables for the due tax debts until December 25, 2020 inclusive.
• The requests for VAT refund will be solved with subsequent control for the returns with the negative amount of VAT submitted within the legal deadline for submission, until January 25, 2021 inclusive.
• For the late payment of rescheduling rates not paid until December 25, 2020 inclusive, no interest and penalties are calculated or due.
PAYMENT SCHEDULE – for debts accumulated after the establishment of the state of emergency
• The payment rescheduling is approved for a maximum of 12 months.
• It is granted for all fiscal obligations registered in the Fiscal attestation certificate, if certain conditions are met:
o The payment rescheduling is not granted for fiscal obligations in the total amount of less than 500 lei in the case of natural persons and 5,000 lei in the case of legal entities;
o In order to benefit from the payment rescheduling, the company must submit an application to the fiscal body until December 15th, 2020.
o Not to be in dissolution or bankruptcy;
o To have submitted all tax returns.
• For the amounts that are the object of the payment rescheduling, the forced execution procedure from the date of communication of the rescheduling decision does not start or is suspended, as the case may be.
• The procedure for granting the payment rescheduling will be approved within 15 days from the date of entry into force of the current emergency ordinance.
ACTIVITY-SPECIFIC TAX EXEMPTION
• Taxpayers obliged to pay the tax specific to certain activities, according to Law 170/2016 (hotels, restaurants, bars), do not owe tax between October 26 and December 31, 2020;
• The specific tax for 2020 will be recalculated and an amending declaration will be submitted.
THE RESTRUCTURING OF TAX OBLIGATIONS
• The deadline for submitting the notification of intention regarding the restructuring of budgetary obligations (G.O. 6/2019) was extended until March 31, 2021 (previously the deadline was September 30, 2020);
• The notification can be submitted between 1st of November and March 31, 2020;
• Subsequently, the taxpayer has to contact an independent expert in order to draw up a restructuring plan and to test the prudent creditor; • The restructuring application can be submitted until June 30, 2021.
TAX REDUCTION FOR BUILDINGS
• Local councils can adopt decisions until the 2nd of December 2020 on reducing the building tax by a rate of up to 50% for non-residential buildings, if during the state of emergency and/or alert, the owners or users of buildings were forced to interrupt their economic activity or if they hold the certificate for emergency situations certifying the partial interruption of economic activity;
• If the local councils adopt the above-mentioned decisions, taxpayers must submit the application for tax reduction by December 21, 2020..
DEDUCTIBILITY OF EXPENSES WITH COVID TESTS
• The expenses coducted by companies or registered sole trader for voluntary testing of employees in order to detect COVID-19 will be tax deductible. If they have been registered as salary benefits, they are exempted from the payment of salary contributions.
SUSPENSION OF FINES
• Suspension of the sanction with a fine until December 31, 2020, for the big taxpayers who did not connect the electronic cash registers to ANAF (previous term September 30, 2020).