Emergency Government Ordinance no. 99/2020 regarding certain tax incentives, amending some normative acts and extending some deadlines was published in the Official Gazette no. 551/2020 on 25th of June 2020.

Considering the actual economic crisis caused by COVID, new tax incentives were prolonged following the incentives expiring on 25th of June 2020.

1. Prolongation of deadlines up to 25th of October 2020 for the following:

• For tax liabilities due starting with the date of entry into force of Emergency Government Ordinance no. 29/2020 (i.e. 21st of March 2020) and unpaid until 25th of October 2020:
• No late payment interest and penalties are computed according to the Fiscal Procedure Code;
• Such tax liabilities are not considered outstanding.

• Suspension of enforcement measures
• Enforcement measures are suspended or are not initiated, except for forced executions implemented for the recovery of tax receivables established by court decisions, until 25th of October 2020.

• VAT reimbursement requests are to be solved with subsequent tax audit until 25th of October 2020.

• For late payment of the instalments related to the rescheduling plan unpaid until 25th of October 2020, no late payment interest and penalties are computed according to the Fiscal Procedure Code.

2. Prolongation of tax incentives in the area of corporate income tax and microenterprise tax

• Corporate income taxpayers / microenterprise taxpayers performing the tax payment in due time (i.e. 25th of July inclusive and 25th of October inclusive) related to the 2nd and the 3rd quarter of FY 2020 will enjoy a tax reduction of 10% out of the income tax due;

• Taxpayers who have opted for a different fiscal year than the calendar one are also able to benefit from the tax incentives implemented as long as the payment is performed between 25th April – 25th June 2020, respectively 26th of June – 25th of September and 26th of September – 25th of December 2020.

3. HORECA taxpayers

• Horeca taxpayers will not owe HORECA tax for a period of 90 days for FY 2020 (the annual tax shall be computed by dividing the annual tax to 365 days and multiplying the result with the remaining number of days);

• The taxpayers who have temporarily reduced or partially / totally interrupted the activity during the state of emergency period will also deduct the respective number of days when computing the HORECA tax.

4. VAT exemptions

The following transactions are exempt from VAT with deduction right:

• Until 1st of October 2020, deliveries of safety masks and medical ventilators to public institutions are exempt from VAT with deduction right;

• Until 1st of October 2020, intra-community imports / acquisitions of safety masks and medical ventilators performed by public institutions are exempt from value added tax;

• The VAT exemption for deliveries / imports of goods is applied based on the sworn statement of the beneficiary institution upon the delivery / import.