Tax facilities introduced by Government Emergency Ordinance no. 107/2024

Government Emergency Ordinance no. 107/2024 (GEO no. 107/2024) on the regulation of certain fiscal-budgetary measures in the field of managing budget receivables and the budget deficit for the general consolidated budget of Romania in 2024, as well as on the amendment and extension of certain normative acts (published in the Official Gazette, Part I, on 6 September 2024), introduces a series of tax facilities available to the following categories of taxpayer:

1. Legal entities

• Cancellation of ancillary tax obligations (interest, penalties and other ancillaries) relating to principal budgetary obligations outstanding as of 31 August 2024 based on fulfilment of the following conditions:
• settlement of all principal tax obligations managed by the central tax authority, outstanding as of that date, by the date of submission of the ancillary tax cancellation request (and no later than 25 November 2024);
• settlement of all principal and ancillary tax obligations managed by the central tax authority with payment deadlines falling between 1 September 2024 and the date of submission of the ancillary tax cancellation request (and no later than 25 November 2024);
• submission of all tax returns within the legal deadlines by the date of the ancillary tax cancellation request;
• submission of the ancillary tax cancellation request, subsequent to fulfilling the above conditions, by 25 November 2024, under penalty of forfeiture.

The cancellation of ancillaries can also be obtained in other situations – for example, in the case of principal obligations due before 31 August 2024, and which have been paid by this date, or for taxpayers who benefit from payment deferral on tax obligations, where the payment deferral is completed by the submission date of the ancillary tax cancellation request (and no later than 25 November 2024).

Debtors may notify the tax authorities of their intention to apply for a cancellation of ancillaries by 25 November 2024. This has the effect of deferring the payment of ancillaries, thus preventing the initiation or suspension of the enforcement procedure for the deferred ancillaries until the ancillary cancellation request has been processed, or until 25 November 2024 in the event that the debtor does not submit an ancillary tax cancellation request.

Ancillaries settled after the entry into force of GEO no. 107/2024 that are eligible for cancellation will be refunded in accordance with the provisions of the Fiscal Procedure Code.

• A bonus of 3% of the tax due for taxpayers subject to corporate income tax or microenterprise income tax for the tax year 2024/tax year starting in 2024, based on fulfilment of the following conditions:
• submission of all returns;
• complete and timely payment of the annual corporate income tax/microenterprise income tax for the year 2024/modified tax year starting in 2024;
• no outstanding obligations as of the legal deadline for submitting the annual corporate income tax return for the year 2024/modified tax year starting in 2024, or the return for the microenterprise income tax for Q4 of the 2024 tax year.

The bonus also applies to taxpayers subject to minimum turnover tax for 2024/the tax year starting in 2024.

The tax authority will automatically assess compliance with the conditions for obtaining the bonus, whereafter it will issue a decision following expiry of the deadline for submitting the annual tax return applicable to the taxpayer.

The amounts subject to a bonus will not be refunded but will instead be used to offset the taxpayer’s tax obligations.

1. Individuals:

Partial cancellation of principal obligations and related ancillaries outstanding as of 31 August 2024, as follows:

• cancellation of 50% of the principal obligations, up to RON 5,000, if half of these amounts are paid by the submission date for the cancellation request (and no later than 25 November 2024);
• cancellation of 25% of the principal obligations exceeding RON 5,000, if 75% of these amounts are paid by the submission date for the cancellation request (and no later than 25 November 2024).

Any amounts representing the principal obligations and ancillaries eligible for cancellation that are settled after the entry into force of GEO no. 107/2024 will be refunded.

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Source: Government Emergency Ordinance no. 107/2024 on the regulation of certain fiscal-budgetary measures in the field of managing budget receivables and the budget deficit for the general consolidated budget of Romania in 2024, as well as on the amendment and extension of certain normative acts, and Order no. 55521/2024 approving the Procedure for the Cancellation of Certain Budgetary Obligations.