Recent fiscal amnesty in Romania: Who can benefit from it? | News Flash

Emergency Ordinance 107/2024, regarding the regulation of certain fiscal-budgetary measures in the area of managing budgetary claims and the budget deficit for Romania’s consolidated general budget in 2024, was published in the Official Gazette no. 905/06.09.2024 and came into effect on the same date.

The aim of the measures adopted by the Romanian Executive is to support taxpayers, given that the business environment is facing a temporary liquidity shortage, and to encourage voluntary payment, so that the State ensures a decrease in the volume of arrears while increasing budget revenues to support economic expenditures.

Who can benefit from fiscal amnesty in Romania?

The measures apply to all categories of debtors, such as:

• Individuals or legal entities, public or private,
• Associations and other entities without legal personality,
• Individuals conducting independent economic activities or practicing liberal professions,
• Administrative-territorial units or subdivisions of Bucharest,
• Public institutions.

The following are considered outstanding fiscal obligations until August 31, 2024, include:

• Fiscal obligations with a payment deadline up to and including August 31, 2024;
• Fiscal obligations imposed by a decision communicated by August 31, 2024, even if the payment deadline has not yet been reached under the law;
• Additional payment obligations determined by the tax authority following an audit, established through a decision communicated by the entry into force of this emergency ordinance;
• Fiscal obligations issued through an official decision for periods up to August 31, 2024;
• Fiscal obligations from summonses calculated until August 31, 2024.

The following are NOT considered outstanding as of August 31, 2024:

• Budgetary obligations for which payment facilities have been granted and are ongoing by August 31, 2024;
• Payment obligations established in administrative acts whose execution is suspended by law by August 31, 2024.

What obligations are covered by GEO 107/2024 and under what conditions can they be amnestied?

1. Interest, penalties, and all accessories related to principal budgetary obligations outstanding as of August 31, 2024, will be canceled if the following conditions are met:

• All principal budgetary obligations outstanding as of August 31, 2024, are settled by the time of the submission of the accessory cancellation request, but no later than November 25, 2024;
• All principal and accessory obligations with payment deadlines between September 1, 2024, and the time of submitting the request for accessory cancellation are settled, but no later than November 25, 2024;
• All tax returns are filled when submitting accessory cancellation request. This condition is also considered fulfilled if, for periods when tax returns were not submitted, the fiscal obligations were determined by decision of the central tax authority;
• The debtor submits the accessory cancellation request after the above conditions have been properly fulfilled, by November 25, 2024, under penalty of forfeiture.

2. Interest, penalties, and all accessories related to differences in principal budgetary obligations declared additionally by debtors through corrective declarations correcting principal obligations with deadlines before August 31, 2024, will be canceled if the following conditions are met:

• The corrective return is submitted between September 1, 2024, and the submission date of the accessory cancellation request, but no later than November 25, 2024;
• All principal obligations identified in the corrective return are settled by the time of the accessory cancellation request, but no later than November 25, 2024;
• All principal and accessory obligations with payment deadlines between September 1, 2024, and the time of submitting the accessory cancellation request are settled, but no later than November 25, 2024;
• The debtor has submitted all tax declarations by the time of the accessory cancellation request.

3. Interest, penalties, and all accessories related to principal budgetary obligations with deadlines before August 31, 2024, and settled by this date, will be canceled if the following conditions are met:

• All principal and accessory obligations with payment deadlines between September 1, 2024, and the time of submitting the accessory cancellation request are settled, but no later than November 25, 2024;
• The debtor has submitted all tax returns by the time of the accessory cancellation request. This condition is also considered fulfilled if, for periods when tax returns were not submitted, the fiscal obligations were determined by decision of the central tax authority;
• The debtor submits the accessory cancellation request by November 25, 2024, under penalty of forfeiture.

NOTE! Accessories settled after the ordinance’s entry into force are subject to cancellation and refund according to Article 168 of the Fiscal Procedure Code.

4. Interest, penalties, and all accessories related to principal budgetary obligations managed by the central tax authority with deadlines before August 31, 2024, and included in tax decisions issued as a result of an ongoing audit at the time of GEO 107/2024 enters in force, will be canceled if the following conditions are met:

• All principal obligations specified in the decision are settled by any means before the payment deadline;
• The accessory cancellation request is submitted within 90 days from the communication of the decision, under penalty of forfeiture.

NOTE! For the cancellation of accessory obligations according to points I-IV, debtors must notify the tax authority of their intention no later than November 25, 2024.

5. Individuals with outstanding principal budgetary obligations as of August 31, 2024, of up to 5,000 lei can benefit from:

• 50% cancellation of outstanding obligations if 50% is settled by the time of submitting the cancellation request, but no later than November 25, 2024;
• Cancellation of interest, penalties, and all accessories related to principal obligations if the condition above is met.

6. Individuals with outstanding principal budgetary obligations greater than 5,000 lei as of August 31, 2024, can benefit from:

• A 25% cancellation of outstanding obligations if 75% is settled by the time of submitting the cancellation request, but no later than November 25, 2024;
• Cancellation of interest, penalties, and all accessories related to principal obligations if the condition above is met.

Discounts for corporate income tax payers and for microenterprise tax payers due to the fiscal amnesty in Romania

The Romanian corporate income tax payers and microenterprise tax payers can benefit from a 3% discount on the taxes due for fiscal year 2024 or the modified fiscal year starting in 2024.

The discount is automatically applied after the filing deadline of the annual corporate income tax return / microenterprise tax return for the fourth quarter of the 2024 fiscal year. The discount is not refunded but used for offsetting tax obligations.

The discount is granted by the tax authority if the taxpayer:

• Has filed all tax returns according to their tax obligations;
• Has fully settled the taxes due for year 2024 / modified fiscal year starting in 2024, by legal deadlines.
• Has no outstanding tax obligations at the legal deadline for submitting the annual corporate income tax return / microenterprise tax return for the fourth quarter of 2024.

These provisions also apply to companies owing corporate income tax equal to the level of the minimum turnover tax at the end of 2024.

The application procedure will be approved by an Order of the Ministry of Finance within 45 days from the ordinance’s entry into force.

Do not hesitate to contact our Romanian specialists who, based on their many years of experience, will help you effectively implement these new changes.

Alexandru Ranete

Tax Director | Accace Romania

Book a meeting with Alexandru