Amendments to Ordinance no. 92/2003 regarding the Fiscal Procedural Code and to Emergency Ordinance no. 29/2011 regarding the deferral of payment

Amendments to Ordinance no. 92/2003 regarding the Fiscal Procedural Code and to Emergency Ordinance no. 29/2011 regarding the deferral of payment

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17 June 2013

Government Emergency Ordinance no. 50/2013 regarding several fiscal measures (the “Ordinance”) was published on 3 June 2013.

Amendments to the Fiscal Procedural Code

Regarding late-payment penalties

The penalty calculation method has been changed. Instead of the previous fixed thresholds of 5% and 15%, the penalty is now set at 0.02% per day of delay.

These new late-payment penalties apply to tax liabilities due as of 1 July 2013.

Regarding payments by offering real estate as equivalent

It is expressly stipulated that any person other than the debtor may offer real estate as payment, on the conditions that it is free of any encumbrances and not subject to an enforcement procedure. That person thereby assumes the debtor’s payment obligation or is liable for it under the law.

Real estate so included in the public domain will be transferred into the administration of public entities under the condition of maintaining its public use and public interest for a period of at least five years.

Amendments to Emergency Ordinance no. 29/2011 regarding the deferral of payment

Regarding the creation of sequester, pledge or mortgage over an asset already pledged / mortgaged in favour of a third party

  • - the value of the asset offered as collateral should cover not only the deferred amounts, their interest and the additional percentage of up to 16% of the deferred amounts, but also the receivable for which the pledge / mortgage in favour of the third party was initially created.

Maintaining the deferral decision

  • the deadline for payment of the tax liabilities due has been extended from 90 to 180 days as of the communication date of the deferral decision;
  • the deadline for payment of tax liabilities for which a taxpayer has received a payment notice after the communication of the deferral decision has been extended from 30 to 180 days, calculated from the communication date of the payment notice, but this term cannot exceed the date when the deferral is completed.

Modifying the deferral decision

  • a new case of modifying the deferral decision has been created by including in the deferred amounts the tax liabilities assessed by the tax authorities which become due after the date the deferral decision is communicated;
  • the new deferred amounts do not extend the previously approved deferral period.

Regarding low-risk taxpayers

  • the value of the collateral offered for obtaining a deferral should also include the value of the late-payment penalties;
  • companies established less than 12 months prior to the request for deferral are excluded from applying for payment deferral requests;
  • in the event that the tax bodies find that the information provided by a taxpayer is inaccurate, they will annul the deferral decision and enforce the collaterals.

Regarding taxpayers who receive European funds

The Ordinance contains specific provisions regarding taxpayers entitled to receive certain liquid and due amounts from the relevant authorities managing European funds, based on financing agreements concluded with the latter. Specifically, such taxpayers are entitled to request the deferral of payment of the taxes, contributions and their related amounts due to the State budget.

[Source: Official Gazette of Romania, Part I, no. 320/03.06.2013]

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