The main beneficiaries of the tax amnesty recently passed into legislation by the Romanian Parliament are individuals who have obtained revenues from the transfer of real estate properties for tax periods up to 1 June 2017, if their income was or could have been requalified for tax purposes as income obtained from independent activities (hence requiring the payment of income tax and social security contributions).
All individuals who have carried out agricultural production activities for tax periods up to 31 December 2016 will also benefit from this amnesty, if they have been (or could be) required to pay VAT due to exceeding the exemption threshold stated in the Fiscal Code.
Law 29/2018 on the cancellation of certain fiscal obligations, was published in the Official Journal of Romania (no.52), on 18 January 2018. The law is a parliamentary initiative, on which the Ministry of Public Finance has expressed a negative opinion, which it has maintained throughout the whole legislative process. The law took effect on 21 January 2018. The application norms will be issued within 30 days of the date when the law entered into force, by an order of the ANAF President.
What is the reason for the law?
The explanatory memorandum states that the reason for the tax amnesty is the need to correct situations which have arisen in practice, due to the non-uniform application of the relevant legislation by the tax authorities. Contradictions in the interpretation and application of tax law have also had the effect of double taxation.
Who are the beneficiaries of the tax amnesty?
The following categories of taxpayers benefit from the amnesty:
What tax obligations are being cancelled?