Emergency Government Ordinance no. 33/2020 regulating certain tax incentives was published in the Official Gazette no. 260 on 30th of March 2020.
On 30th March 2020, several tax incentives intended to support taxpayers were published In the Official Gazette, measures that were previously officially announced by the Ministry of Finance, as follows:
Tax incentives related to payment of corporate income tax / income tax on microenterprise / HORECA corporate tax
- Corporate income taxpayers / HORECA taxpayers that will settle the tax due for the first quarter of 2020 and also the advance payment for the same quarter 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.
- The Ordinance provides that the tax reduction will be distinctly reflected in the annual corporate income tax return, without any other reference regarding the concrete method of declaration and payment for Q1. As the tax incentive is expected to sustain taxpayers experiencing a downturn in the current context, the tax reduction should normally be applied to the corporate income tax resulting from the Q1 corporate tax computation, for all taxpayers mentioned above. As soon as we have an official confirmation from the tax authorities, we will revert with additional information.
Deferral of VAT in customs for importers of personal protection equipment / materials for medical use for fighting / preventing COVID
- During the state of emergency period and 30 days after, the customs authorities will not require VAT to be paid in customs to taxpayers registered for VAT purposes for all imports of personal protection equipment or other medical equipment, as well as imports of medicines or materials for medical use which will be used for preventing the spread of COVID -19.
- The VAT related to such imports will be subsequently reflected in the VAT returns as input and output VAT.
Any presented information is general and is not meant to address the specific conditions of a particular individual or legal person. Although we try to provide accurate and up-to-date information, there is no warranty that such information is accurate at the time of its receipt or that it continues to be accurate. No action should be taken based on this information without relevant professional assistance following a careful examination of the circumstances that are typical of a particular state of affairs.
