Coronavirus Update no. 17/2020 – Extension of deadlines for certain tax incentives

Coronavirus Update no. 17/2020 – Extension of deadlines for certain tax incentives

References: GEO 90/2020, GEO 29/2020, GEO 48/2020, GO 6/2019, GO 6/2020

Coronavirus Update no. 17/2020 – Extension of deadlines for certain tax incentives

In the Official Gazette no. 459 from May 29, 2020, was published the Government Emergency Ordinance no. 90/2020 for changing certain tax relief measures, as well as for changing other laws. These measures were provided to reduce the negative economic effects of the pandemic and for helping the business environment.

We further present below the main provisions of these pieces of legislation.


Extension of the payment deadline for not applying interest and penalties

It is extended until June 25th, 2020 (inclusively), the deadline until which late payment interest and penalties for unpaid taxes are not due. The measure applies to taxes due between March 21st, 2020 and 30 days after the end of the state of emergency – June 13, 2020.


Previously, no late payment interest and penalties were due for such taxes (which were also not considered outstanding obligations), until the fulfilment of 30 days from the end of the state of emergency.


NOTE: More details regarding this measure were presented in Coronavirus Update no. 3/2020 from March 22nd, 2020.



Changes of the VAT refund procedure

The deadline provided for applying exceptional measures for settling VAT returns with negative amounts requested for reimbursement, specifically the settlement with a subsequent tax audit, is extended until June 25th, 2020.

Initially, the VAT refund procedure without a prior inspection applied only during the state of emergency and 30 days after it ended (i.e until June 13, 2020).

NOTE: We informed you about this measure in Coronavirus Update no. 11/2020 from April 23rd, 2020.



New amendments to GO 6/2019 regarding the restructuring of outstanding taxes

The reference date for computing the outstanding budgetary obligations that can be restructured is changed and becomes March 31st, 2020 (initially it was December 31st, 2018). Thus, the debtors can restructure the taxes that were outstanding on March 31st, 2020 and unpaid until the date the tax certificate is issued. Any interest and penalties or other accessories due, may be also restructured.

The notification regarding the intention to restructure the taxes due may be submitted until September 30, 2020 (previously the deadline was July 31st, 2020).

Also, the deadline for submitting the restructuring application changes from October 30, 2020 to December 15, 2020.

NOTE: You may find more details about these measures and their subsequent amendments in Newsletter 11/2019 from September 30, 2019 and Newsletter 4/2020 of March 5, 2020.



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