On 30 March 2020, the Government Emergency Ordinance no. 33/2020 (GEO) regarding fiscal measures and the amendment of certain normative acts was published. The GEO mainly focuses on (i) stimulating tax payments, by offering bonuses to taxpayers who still have the financial capacity to cover their duties and (ii) ensuring the need for medicines and medical equipment used in the fight against COVID-19 by supporting the economic operators which import such products.
The additional measures regulated by the GEO are:
Bonus for taxpayers. Taxpayers that pay the corporate income tax related to the first quarter of 2020 up to 25 April 2020 benefit from bonuses consisting in a reduction of the tax, as following:
5% bonus – in case of large taxpayers
10% bonus – in case of medium and small taxpayers
Taxpayers having a different financial year than the calendar year benefit from the above-mentioned bonuses if they pay the quarterly instalment or anticipated payment up to the due dates that fall between 25 April – 25 June 2020.
This bonus should be recorded separately in the annual corporate income tax return.
This bonus is also granted for taxpayers who are regulated by Law no. 170/2016 (HORECA), for the first quarter of 2020, for the performance of other activities than those specifically regulated by that Law.
Microenterprises. The conformation and payment of the microenterprise income tax calculated for the first quarter of 2020 benefits from 10% bonus, if it is performed up until 25 April 2020.
Calculation method. From the usually applicable income tax it is deducted the bonus regulated by the GEO, thus resulting the actual income tax for the taxpayers who pay up until 25 April 2020.
VAT facilities. A facility is granted for economic operators who import medicines, protective equipment, other medical devices and equipment and sanitary materials used in the combat of COVID-19. For the entire duration of the state of emergency and 30 days after the termination, VAT is not required to be paid by these economic operators in the customs and the customs authorities shall not require the payment of such VAT during the aforementioned period.
Economic operators which import these products during the fiscal period will register the VAT both as collected and deductible tax.
A list of products for which VAT taxes are not required to be paid is found in the annex published together with the GEO.
Emergency State Certificates. The emergency state certificate – issued according to the methodology approved by the Minister of Economy, Energy and Business Environment (check out our article for additional information on this topic) – shall state, based on the affidavit provided by the applicant (i) the actual decrease of the revenues or incomes of minimum 25% in March 2020, compared to the average of January and February 2020 or (ii) the total or partial shutdown of activity following the public authorities’ decision during the state of emergency.
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