The Emergency Ordinance regulates 4 types of fiscal facilities and covers several eventualities:

• Cancellation of interest, penalties and all accessories related to the outstanding budget obligations (i.e. principal) as of March 31, 2020, inclusive, in the case of taxpayers who at this date register both accessory budget obligations and main budget obligations (i.e. principal)

In order to benefit from the measure of cancellation of accessories, taxpayers must pay the main outstanding budget obligations (i.e. principal) as of March 31, 2020 and the current obligations (arising after March 31, 2020), submit all tax returns and submit the request for cancellation of accessories up to 15 December 2020.

• Cancellation of interest, penalties and all accessories related to the outstanding budget obligations (i.e. principal) additionally declared by the debtor through rectifying tax returns, with a maturity prior to March 31, 2020 inclusive

In this case, taxpayers who consider that there are errors in the amounts initially declared may submit a rectifying tax return declaring the additional obligations and may benefit from the cancellation of the accessories related to the additionally declared obligations if they pay these obligations as well as the current obligations (arising after March 31, 2020), submit all tax returns and, of course, submit the request for cancellation of accessories until December 15, 2020.

• Cancellation of interest, penalties and all accessories related to outstanding budget obligations (i.e. principal) as of March 31, 2020, inclusive, if at this date the taxpayer has paid the principal obligations (it only registers interest, penalties or other accessories)

In this case, in order to benefit from the measure of cancellation of accessories, taxpayers must pay the current obligations (arising after March 31, 2020), submit all tax returns and submit the request for cancellation of accessories until December 15, 2020.

• Cancellation of interest, penalties and all accessories related to outstanding budget obligations as of March 31, 2020, inclusive, established by a tax decision issued as a result of the tax inspection or verification of the personal tax situation which is ongoing on the date of entry into force of the current emergency ordinance

In this case, taxpayers who on the date of entry into force of the ordinance have an ongoing tax inspection or verification of personal tax situation may benefit from the cancellation of accessories related to the obligations additionally established by the tax inspectors if they pay these obligations by the payment deadline mentioned by the tax inspection report and if they submit the request for cancellation of the accessories within 90 days from the date of communication of the tax inspection report, regardless of whether this inspection was completed by December 15, 2020 or later.

Taxpayers can notify the tax authorities of the intention to benefit from the cancellation of the accessories. In this case, a special administration regime is established for the accessories that may be subject to cancellation. Debtors who have not notified the tax authorities in order to benefit from the cancellation of interest, penalties and all accessories that can be canceled and which paid the amounts due after the date of entry into force of the emergency ordinance are refunded, upon request, according to the Fiscal Procedure Code.

In case of the questions, please, do not hesitate to contact us:

Carmen Cojocaru Partner [email protected] +40 727 333 336

Eduard Pavel Partner [email protected] +40 727 333 345