Government Emergency Ordinance no. 99/2020 on some fiscal measures, amendment of normative acts and extension of deadlines, in force since 25 June 2020

26 Jun 2020

In short

A series of normative acts have been amended by Government Emergency Ordinance no. 99/2020 (GEO 99/2020). We present the main fiscal measures below.

In brief

The specific tax regulated by Law no. 170/2016

For 2020, no specific tax is due for a period of 90 days as of the date of entry into force of GEO 99/2020. The amount due is calculated by dividing the tax by 365 and multiplying the resulting value by 275 (i.e. the difference between 365 days and 90 days). Taxpayers which have ceased their activity, in whole or in part, due to the state of emergency, can similarly recalculate their specific annual tax.

Value added tax

Until 1 October 2020, the following operations with protective masks and medical fans are exempt from value added tax (VAT) with the right to deduct:

  • deliveries made to public institutions responsible for setting up the rescEU reserve. The supplier justifies the VAT exemption through a declaration of own responsibility regarding the destination of the delivered goods, by the time of delivery;
  • intra-Community imports and purchases by public institutions responsible for setting up the rescEU reserve. Exemption from VAT is justified on the basis of the beneficiary’s declaration of own responsibility, to be lodged with the customs authorities at the time of importation.
Discounts

A 10% discount is granted to corporate tax payers, regardless of the declaration and payment system, and micro-enterprise revenue tax payers which pay the tax due quarterly / quarterly advance payment by the due dates of 25 July 2020, for quarter II, and by 25 October  2020, for quarter III.

The 10% discount also applies to taxpayers which have opted for a financial year other than the calendar year and which pay the tax due quarterly / quarterly advance payment by the due date, if applicable, between 26 June and 25 September 2020 inclusive, and between 26 September and 25 December 2020 inclusive, in accordance with the law.

Extension of term

The following facilities have been extended until 25 October 2020:

  • Postponement of the calculation of interest and late-payment penalties for tax obligations that became due after 21 March 2020.
  • Measures for the enforcement of budget receivables, with the exception of enforcement which applies to the recovery of budget receivables established by final judgments in criminal matters;
  • VAT refund procedures carried out with subsequent performance of fiscal inspections established by GEO no. 48/2020;
  • Postponement of the calculation of interest and late-payment penalties on unpaid scheduled instalments under the Fiscal Procedure Code.

[Government Emergency Ordinance no. 99/2020 regarding some fiscal measures, the modification of some normative acts and the extension of some terms, published in the Official Gazette no. 551 of 25 June 2020]

The takeaway

For 2020, the specific tax regulated by Law no. 170/2016 is not due for a period of 90 days.

Deliveries, imports and intra-Community acquisitions of personal protective masks and medical ventilators made to / by the public institutions responsible for setting up the rescEU reserve are exempt from VAT until 1 October 2020.

A 10% discount is granted to corporate income taxpayers, regardless of the reporting and payment system, micro-enterprise revenue taxpayers and specific taxpayers which pay the tax due by the deadlines set for quarters II and III of 2020.  The measure also applies to taxpayers with a modified tax year.

The following measures have been extended until 25 October 2020: the measure of postponing the calculation of interest and late-payment penalties for due tax obligations; enforcement measures by seizure of budget receivables; the VAT refund procedure with subsequent fiscal inspection established by GEO 48/2020; and the calculation of interest and late-payment penalties for unpaid scheduled instalments under the Fiscal Procedure Code.

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