On 14 May 2020, Government Emergency Ordinance (GEO) no. 70, which adopted specific tax regulations to limit the deductibility of losses generated by the assignment of receivables, was published in the Official Journal of Romania. The fiscal measures set out in this new emergency ordinance exempt government securities and obligations from the provisions of Art. 25, para. (10) of the Fiscal Code on limiting the losses generated by the assignment of receivables.
GEO no. 70 introduces a new paragraph into the Fiscal Code in Art. 25, which expressly regulates the tax treatment applicable to transfers of government securities and bonds, as follows: „The provisions of par. (10) do not apply in the case of transfers of government securities, bonds and other debt instruments that give the holder a contractual right to collect in cash, the expenses recorded from these transfers being deductible when calculating the tax result.”
This ordinance is applicable from 14 May 2020, and its provisions are not retroactive. Thus we consider that for the fiscal year 2020, taxpayers will apply differentiated tax provisions on the assignment of government securities made during 2020, as follows:
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