Considering the actual economic context caused by COVID - 19 pandemic, the Ministry of Finance has published on 26th of March 2020 a series of official releases regarding certain tax incentives which are expected to be officially published in the Official Gazette of Romania, as it follows: 

I. Tax incentives related to payment of corporate income tax / income tax on microenterprise / HORECA corporate tax

The proposed tax incentives are applicable accordingly for the below taxpayers:

▪ Corporate income taxpayers / HORECA taxpayers that will settle the tax due for the first quarter of 2020 until the 25th of April deadline inclusive will enjoy a tax reduction of 5% or 10% computed on the income tax due;

▪ Taxpayers applying the microenterprise tax regime performing the 1st quarter tax payment in due time (25th of April inclusive) will benefit from a 10% reduction of the income tax;

▪ Large taxpayers are eligible for a 5% tax reduction, while medium and small sized taxpayers may enjoy a 10% reduction;

▪ Taxpayers who have opted for a different fiscal year than the calendar one are also able to benefit from the tax incentive provided that the payment of the tax due is performed between 25th April – 25th June 2020.

II. Exemptions from customs duties and VAT paid for the imports of certain goods necessary for fighting COVID

The Ministry of Finance has requested to the European Commission the approval (expected to be granted at the end of this week) for the application of an exemption from customs duties and VAT for the following goods:

▪ Imports of personal protection equipment or other medical equipment, as well imports of medicines which will be approved by the competent authorities and which are traded by state, charitable or philanthropic organizations.

All imports of aforementioned goods will be distributed free of charge to all the victims of disasters or will be allocated to satisfying all the needs for preventing the spread of COVID -19.

III. Deferral of VAT in customs for Importers of test kits, medicines and personal protection equipment

The deferral of VAT in customs was approved for VAT payers that import test kits, disinfectants or medical equipment. The VAT will be subsequently reflected in the VAT returns as input and output VAT.

We reiterate that the above tax incentives have been officially communicated by the Ministry of Finance but not yet published in the Official Gazette. As soon as they will be published in the Official Gazette, we will revert with additional information.