GEO no. 99/2020 was published in the Official Journal of Romania, on 25 June 2020. The GEO extends the application of fiscal measures to support the business environment in the context of the Covid-19 epidemic.
GEO no. 99/2020 thus creates the necessary legal framework to allow facilities such as:
Specific tax measures to support the HoReCa industry
The Government has granted an exemption from payment of the specific tax, during the fiscal year 2020, for a period of 90 days, from the date of entry into force of this ordinance for taxpayers whose activities are governed by Law no. 170/2016 on the specific tax for certain activities. The 90 days of exemption are added to the period for which no specific tax is calculated due to the interruptions of activity as a result of the state of emergency, as specified in GEO no. 48/2020.
Furthermore, the deadline for declaring and paying the specific tax for the first quarter of 2020 has been extended to 25 October 2020.
Measures on bonuses for payment of corporate tax and income tax on micro-enterprises
According to the provisions of Law no. 54/2020 for the approval of GEO no. 33/2020, the 10% bonus granted to taxpayers which paid, upon maturity, the profit tax / quarterly advance payment for the first, second and third quarters of 2020, was calculated on the profit tax due.
GEO no. 99/2020 has clarified that taxpayers which pay income tax, and which also pay the specific tax on certain activities, may also benefit from the bonus for the profit tax / quarterly advance payment related to the first, second and third quarters of 2020, determined for the activities carried out, other than those corresponding to CAEN codes provided by law.
The new provisions of GEO no. 99/2020 clarify the application of the bonus by taxpayers paying micro-enterprises tax. Under the new provisions, the bonus is calculated on the quarterly due tax / quarterly advance payment.
GEO no. 99/2020 also states that taxpayers which have opted for the modified fiscal year will benefit from the bonus. Thus, the application of bonuses for the payment of income tax due / prepayment is extended for the second and third quarters, i.e. for the period 26 June - 25 September inclusive, and the period 26 September - 25 December inclusive, for 2020. Mentioning these payment periods is necessary as the amended fiscal year does not correspond to the calendar quarters of 2020.
From 25 June until 1 October 2020, the following operations involving protective masks and medical ventilators will be VAT-exempt with the right to deduct:
Extension of deadlines
The following facilities previously granted will be extended to 25 October, inclusive:
© 2021 KPMG Tax SRL, a Romanian limited liability company and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.