Tax facilities - new time limits

05 April 2021

The fiscal amnesty regulated by Emergency Government Ordinance no. 69/2020 which approved the tax facility consisting in the cancelation of interest, penalties and other ancillary amounts related to the main obligations overdue on 31 March 2020 has been extended. To benefit from this facility, the taxpayer must submit to the competent tax body a request for the cancelation of ancillary amounts.

With the entry into force of the new Emergency Government Ordinance no. 19/25.03.2021, published in the Official Gazette no. 315/29.03.2021, the time limit for submitting the request is extended from 31 March 2021 to 31 January 2022.

To benefit from the cancellation of ancillary amounts related to the main obligations overdue on 31 March 2020, the taxpayer must:

pay the main obligations overdue on 31 March 2020 before submitting the request for the cancelation of ancillary amounts;
pay the main obligations and ancillary amounts with due dates between 1 April 2020 and the date of submission of the request for the cancelation of ancillary amounts before the date of submission of the request for the cancelation of ancillary amounts;
have submitted all tax statements, according to the total declared taxes („tax vector”), before the date of submission of the request for the cancelation of ancillary amounts.

The time limit for submitting the requests for cancelation of ancillary amounts has also been extended for interests and penalties resulting from tax inspections.

In this way, the request for cancellation of ancillary amounts can be submitted by 31 January 2022, or within a period of 90 days after the tax assessment decision is communicated to the taxpayer, if the 90-day period ends after 31 January 2022. This rule applies both for tax inspections ongoing on the date of entry into force of the Emergency Government Ordinance no. 19, and for those started at a later date, but no later than 31 January 2022, regardless of when such tax inspection is completed.

Moreover, interests, penalties and all ancillary amounts that can be cancelled according to the new provisions and that have been extinguished after the date of entry into force of Emergency Government Ordinance no. 19 can be reimbursed.

Please note that both legislative acts, Emergency Government Ordinance no. 69/2020 and Emergency Government Ordinance no. 19/2021, regulating the cancellation of ancillary amounts also in relation to tax inspections refer to inspections ongoing on the date of their entry into force.

As a consequence, the category of beneficiaries of this cancellation facility does not include ancillary amounts resulting from tax inspections started after 14 May 2020 (the date of entry into force of Emergency Government Ordinance no. 69/2020) and completed before 29 March 2021 (date of entry into force of Emergency Government Ordinance no. 19/2021).

These fiscal measures support taxpayers facing financial difficulties during the pandemic.