Deferral of taxes and duties

The current context, triggered by the COVID19 epidemic, is already creating numerous difficulties and challenges for companies, with a new economic crisis on the horizon. The bill on the amendment of certain provisions of the Tax Code to change the payment deadlines for a series of substandard taxes in the next period was presented to the Chamber of Deputies yesterday.

Therefore, the taxes and duties in the bill are:

• income tax for fiscal year 2019 and first quarter 2020;

• income tax on micro-enterprises for the first quarter of 2020;

• payroll taxes and salaries between February and April 2020;

• Social health contributions related to wages received in the period February-April 2020;

  The current context, triggered by the COVID19 epidemic, is already creating numerous difficulties and challenges for companies, with a new economic crisis on the horizon. The bill on the amendment of certain provisions of the Tax Code to change the payment deadlines for a series of substandard taxes in the next period was presented to the Chamber of Deputies yesterday.

  Therefore, the taxes and duties in the bill are:

  • income tax for fiscal year 2019 and first quarter 2020;

  • income tax on micro-enterprises for the first quarter of 2020;

  • payroll taxes and salaries between February and April 2020;

  • Social health contributions related to wages received in the period February-April 2020;

  • the contribution to employment insurance related to wage income achieved in the period February-April 2020;

  • VAT from February to April 2020;

  for Romanian legal entities operating in the areas most affected by the new changes. The CAEN codes to which these provisions apply are:

  4520	4743	4762	4782	5320	5629	7311	8559	9512
  4532	4751	4764	4789	5510	5630	7490	8690	9529
  4540	4752	4765	4799	5520	5911	7911	9002	9601
  4619	4753	4771	4932	5530	6820	7912	9003	9602
  4719	4754	4772	4939	5590	6831	8121	9311	9604
  4741	4759	4778	4941	5610	7021	8230	9313
  4742	4761	4779	5229	5621	7022	8299	9329

  If such a law project is adopted, the payment deadline shall be extended until 25^th of July 2020 or until a later date determined by the Government’s decision.

  Local taxes: Land tax, the tax on means of transport is paid with the subsidy set by the City Council if it is paid in full by 30^th of June 2020.

  The conditions under which a legal person may benefit from these facilities are as at 31^st of December 2019 cumulatively fulfilled:

  • had one of the activities listed above in the instruments of incorporation and income arising from those activities during 2019;
  • not in liquidation.

  The proposed measures may be a breath of fresh air for the companies affected by the crisis, but for the moment we are only talking about a law project. We’ll keep you informed of its evolution.

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