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.
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]
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.