Government Emergency Ordinance no. 33/2020 regarding some fiscal measures, effective from 30 March 2020

02 Apr 2020

In brief

To ensure state budget revenue collections and the purchase of medical drugs and equipment for combatting COVID-19, the Romanian Government has adopted additional measures to those introduced through GEO 29/2020. 

In detail

Government Emergency Ordinance no. 33/2020 (“GEO 33”) provides reductions of the first quarter 2020 profit tax amount due by large (5% reduction) and small-to-medium (10% reduction) taxpayers which pay by 25 April 2020.  

Taxpayers with non-calendar fiscal years than the calendar year and payments due for the quarter covering the period 25 April 2020 – 25 June can also benefit from the above profit tax reductions.  The reduction is then recorded in the annual profit tax return. 

A 10% reduction is granted for first quarter 2020 microenterprise revenue tax payments made by 25 April. 

No VAT applies imports of medical equipment and drugs for combatting COVID-19 during the state of emergency and for a further period of 30 days after the government lifts it. 

Economic operators will be issued with a State of Emergency Certificate if they provide a declaration on their own responsibility that their revenues in March were at least 25% lower than their average for January and February 2020 or that their activities were partially or totally interrupted during the state of emergency as a result of the competent public authorities’ decisions. 

[Government Emergency Ordinance no. 33/2020 regarding some fiscal measures, published in the Official Gazette no. 260 dated 30 March 2020]

The takeaway 

For Q1 2020 tax payments, GEO 33 provides:

  • large taxpayers with a 5% reduction of the profit tax due when paid by 25 April 2020;

  • small-to-medium taxpayers with a 10% reduction of the profit tax due when paid by 25 April 2020;

  • microenterprises with a 10% reduction of the revenue tax due when paid by 25 April.   

Simplification measures apply for VAT payments on imports of medical equipment and drugs needed for combatting COVID-19 until 30 days after the government lifts the state of emergency. 

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Ionut Simion

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