LEGAL AMENDMENTS MADE BY IMPLEMENTING REGULATION NO. 48/2020
OF 16.04.2020
We have summarised for you the most important legal changes brought about by the entry
into force of the regulation 48/2020:
I. Changes to the fiscal procedural guidelines
Execution proceedings, including through reminders or by auction, are suspended
In our Newsletter No. 5, we informed about the suspension of enforcement measures for the
collection of state budget claims by means of seizure following the entry into force of
Regulation 29/2020. Regulation 48/2020 now also suspends enforcement measures by
means of dunning and auction of assets. The only exceptions are executions ordered by court
decisions in connection with the commission of criminal offences.
Prescription periods are suspended
The prescription periods for the right of the tax authority to file tax claims and initiate
foreclosure proceedings, as well as for the right of taxpayers to request reimbursement of tax
claims in accordance with the tax procedure guidelines, are suspended or do not recommence
until 30 days after the end of the state of emergency.
The input tax is generally refunded with later verification
Input tax, which is applied for refund within the scope of the timely submission of the VAT
return, is now refunded by the tax authority in principle without prior tax inspection. This then
takes place at a later date. However, this does not apply to:
a) Sales tax returns with requested input tax refund, for which the sales tax audit has already
begun by the time this emergency regulation comes into force
b) VAT returns with an requested input tax refund, submitted by large and medium-sized
taxpayers, as defined in Presidential Decree No 3609/2016 of the National Tax Administration
Agency and Presidential Decree No 3610/2016 of the National Tax Administration Agency, if:
the taxpayer presents entries in the tax register that are punishable as criminal offences.
the central tax authority determines, on the basis of the information available to it, that
there is a risk of unjustified reimbursement.
voluntary liquidation proceedings have been initiated or insolvency proceedings have been
opened in respect of the taxpayer concerned, except for those for which a reorganisation
plan has been approved under the conditions laid down in the Insolvency Act
(c) VAT returns with requested refund of input tax submitted by taxable persons other than
those referred to in (b), where:
the taxable person presents entries in his tax register which are punishable as criminal
offences
the central tax authority determines, on the basis of the information available to it, that
there is a risk of unjustified reimbursement;
voluntary liquidation proceedings have been initiated or bankruptcy proceedings have
been opened in respect of the taxpayer concerned, except for those in respect of which a
reorganisation plan has been approved under the conditions laid down in the special law;
the taxpayer submits the first VAT return with a request for refund, after registration as a
VAT payer;
the amount requested for refund originates from more than 12 monthly reporting periods
or from more than 4 quarterly reporting periods.
Provisions concerning deferral of debt repayment agreements
Interest and penalties will not be charged and are not due for payments provided for under the
agreed deferral agreement. This applies until 30 days after the end of the state of emergency.
In such cases, the tax authority will ex officio change the staggered payment schedule and
the new staggered schedule will be notified to the debtor by means of a notice issued by the
tax authority.
The conditions for maintaining the validity of the approved deferral agreements are suspended
until 30 days after the end of the state of emergency.
In the case of liabilities that are a condition for maintaining the validity of the payment options,
taxpayers may request a change in the payment schedule until 30 days after the end of the
state of emergency.
II. Important changes in the Tax Code
Technical unemployment
The following tax reliefs do not apply to allowances for technical unemployment for employees
and other self-employed persons (within the meaning of Emergency Ordinance No 30/2020)
and to allowances in respect of days off to which parents are entitled for the care of the
child/children: exemptions from income tax for certain taxpayers and for the construction
sector; exemptions from pension insurance for the construction sector and health insurance
for the construction sector.
Deductibility of sponsorship expenses for microenterprises
Donations to public bodies and other public authorities may be deducted from the corporate
tax due by micro-enterprises within the limit set by the Tax Code on the basis of the
sponsorship contract, without the beneficiaries being obliged to register in the register of
entities/cultures for which tax deductions are granted.
Benefits in kind for employees in isolation
Benefits in kind granted to employees who are in isolation for a certain period of time as a
result of the declaration of a state of emergency are not included in taxable income and are
not part of the basis of calculation for determining social security contributions.
Exemption from VAT on the import of medicines, protective equipment and alcohol
used in the fight against COVID-19
Taxpayers importing medicines, protective equipment and protective mask production
machinery, other medical devices, equipment, sanitary materials and fully denatured ethyl
alcohol used to prevent, limit, treat and combat COVID-19 are not actually required to pay the
import VAT during the period for which the state of emergency has been established and for
30 calendar days after the end of the state of emergency.
Note: The list of goods for which actual payment of VAT to the customs authorities is not made
is set out in the Annex to Emergency Ordinance No 48/2020.
III. Deadline for the submission of annual accounts is extended
The deadline for the submission of annual accounts for the 2019 marketing year is extended
to 31 July 2020.
IV. Exemption from the specific tax for hotels, restaurants and bars during
the state of emergency
Taxpayers who are obliged to pay the specific tax under Law No 170/2016 (restaurants, bars,
hotels, etc., which are not microenterprises) do not owe any specific tax for the period during
which they have had to interrupt all or part of their activity as a result of the declaration of the
state of emergency. In order to benefit from this tax exemption, taxpayers must meet the
following conditions:
they interrupt all or part of their business activity and hold the emergency certificate issued
by the Ministry of Economy, Energy and the Business Environment
they are not insolvent according to the website of the Commercial Register
DECISION NO 282/2020: PROCEDURAL GUIDELINES CONCERNING REGULATION NO
110/2017 ON STATE AID TO SMALL AND MEDIUM-SIZED ENTERPRISES ‘IMM INVEST
ROMANIA
In our Newsletter No. 5 we informed about the amendment to the program of support for small
and medium-sized enterprises IMM INVEST ROMANIA, which aims to provide State
guarantees for loans granted by credit institutions to small and medium-sized enterprises. The
following has now been added:
Enrolments for the IMM INVEST ROMANIA program should have started on Friday,
April 17 at 10 am, but due to some technical problems the site is not yet functional.
Enrolments will be made until the ceiling and budget allocated to the program are exhausted
by following the steps described on the website www.imminvest.ro.
The following interest rates apply: ROBOR 3M + 2.5% for loans/credit lines to finance
working capital; ROBOR 3M + 2% for investment loans. In this respect, it should be noted that
until 31.03.2021, the State fully subsidises everything that involves interest, management
fees, risk charges.
The amount of financing must meet one of the following conditions:
twice the amount of the wage costs, including compulsory social contributions owed by the
employer for income from wages and salaries corresponding to the wages recorded in
2019. For companies established after 1 January 2019, the maximum amount of the loan
may not exceed the amount budgeted for the first two years of activity
25 % of the beneficiary’s net turnover for 2019, i.e. gross income or annual income norms
for persons receiving income from self-employment, in accordance with the Uniform
Declaration on Income Tax and Social Security Contributions submitted by natural persons
to the competent tax authorities for 2019
value from which its liquidity needs are derived; these may include both working capital
and investment costs, provided that documentation is submitted.
Attention:
Investment loans or lines of credit for financing working capital guaranteed under the
program cannot be used to carry out projects financed by State aid/European funds.
If the beneficiary of the loan or credit line has outstanding tax liabilities and other liabilities
to the State, the credit institution is obliged to ensure that payment of these is made by the
beneficiary from the loan or credit line for working capital granted under the program.
Micro-enterprises are enterprises with fewer than 10 employees and whose total annual
turnover or balance sheet total does not exceed EUR 2 million; small enterprises are
enterprises with fewer than 50 employees and whose total annual turnover or balance
sheet total does not exceed EUR 10 million; medium-sized enterprises are defined as
enterprises with fewer than 250 employees and whose total annual turnover or balance
sheet total does not exceed EUR 50 million.
In order to determine whether an enterprise is a small or medium-sized enterprise or not,
the size of the enterprise (employees, turnover and balance sheet total) is not the only
factor to be taken into account. If it is part of a group that exceeds the above criteria in
total, it cannot benefit from this program