Coronavirus update no. 10/2020 – Tax payment incentives

In the Official Gazette no. 260 from March 30, 2020 was published the Government Emergency Ordinance no. 33/2020 regarding some tax measures and changes of certain acts.

We remind you that, according to the provisions of GEO 29/2020, for the taxes due after March 21, 2020 and which are not paid until their deadline, interest and late penalties are not due and they will not be considered outstanding obligations, until after 30 days from the end of the state of emergency.

Thus, in the current context and the need to finance the budgetary expenditures, the measures adopted by GEO 33/2020 aim to stimulate the payment of taxes. In this respect, certain bonuses may be applied to the corporate income tax due, for taxpayers that have the resources to pay.

We present below the main provisions of this Ordinance.

Incentives for corporate income tax and microenterprise tax

Corporate income taxpayers (including those applying specific taxes), regardless of their submission and payment system, who pay the tax due for the first quarter of 2020, or the advance payment for the same quarter, until the standard deadline of April 25, 2020, will benefit from a tax bonus, computed as follows:

a. 5% for large taxpayers;

b. 10% for medium and other taxpayers.

 

Taxpayers that have a financial year different from the calendar year, can benefit from the aforementioned bonus if they pay the quarterly tax due until the initial deadline for the respective quarter, which should be between April 25, 2020 and June 25, 2020.

The microenterprises taxpayers benefit from a 10% bonus for the tax due for the first quarter of 2020, if it is paid until April 25, 2020.

The payable corporate income tax / microenterprise tax is computed by deducting from the actual tax due the above mentioned bonus.

For the corporate income taxpayers, it is specified that the bonus will be distinctly mentioned in the annual tax return.

Customs VAT exemption

During the state of emergency and another 30 days after it has ended, VAT is no longer payable for imports of medicine, protective equipment and other medical and sanitary devices that can be used to prevent, limit and stop the coronavirus.

   

In order to have an efficient communication, we established a direct link with the related department. For the subject of the current Update, the requests for tax consultancy may be sent to [email protected] with a brief description of the query. One of our consultants will answer or contact you shortly.

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