Romania: Update on tax measures in response to COVID-19

On Saturday, 21 March 2020, the Romanian Government adopted Emergency Ordinance no. 29/2020 with a view to helping businesses come through this difficult period successfully. Of the measures taken, the following have tax impact:

1) For fiscal obligations due starting 21 March 2020 and still unpaid by 30 days after the end of the state of emergency, no interest or late payment penalties will be due. The initial delayed deadline according to the draft bill was 25 July 2020;

2) Foreclosure proceedings will be suspended, except for recovery of amounts awarded by courts in criminal matters;

3) Corporate taxpayers applying the annual profits tax system with quarterly advance payments can make quarterly advance payments for 2020 based on the taxable profit effectively computed for each quarter in 2020;

4) Postponement of the deadline for payment of the first instalment for local taxes (building tax, land tax, and vehicle tax) for all taxpayers (individuals and companies) from 31 March 2020 to 30 June 2020. Taxpayers that pay local taxes by 30 June 2020 can still benefit from tax incentives established by local councils;

5) Notification of the intention to restructure budgetary obligations according to Ordinance no. 6/2019 can be submitted until 31 July 2020. The deadline for submitting the restructuring request is extended until 30 October 2020.

Although announced by the tax authorities, the postponement of tax returns due by 25 March 2020 was not adopted by the Government. Therefore, tax returns must be submitted as usual.