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Late Payment Interest & Penalties Calculator

Late Payment Interest & Penalties Calculator

For tax obligations payable to the State Budget or Local Budgets and for refunds to taxpayers

For tax obligations payable to the State Budget or Local Budgets and for refunds to taxpayers

User Guide

1

Add Title

Optional: add a title in order to easily identify a specific calculation on a screen or in the export file. This field can be left empty and the system will add a default title in the output section containing "Calculation" and its order number.

Accepts all types of characters.

Maximum number of characters is 60.

2

Add Amount Due

Mandatory: Enter the amount due. In the absence of the amount you will not be able to proceed with the calculation.

Accepts only digits. Any other character will not be typed and a validation message will be displayed.

Maximum number of digits is 9.

Does not allow decimals.

"Paste" action is not supported.

3

Add Due Date and Settlement Date

Mandatory: Pick the "Due Date" and "Settlement Date". In the absence of these dates you will not be able to proceed with the calculation. "Settlement Date" needs to be later than the "Due Date" in order to carry on with the calculation.

Earliest date that can be chosen is 1 Jan 2006.

Latest date that can be chosen is 31 Dec 2028.

4

Choose calculation algorithm

Mandatory: Pick the entity to which the money is due. By default the "State Budget" option is pre-selected but should be changed according to your particular scenario. Please visit the "Calculation Method" section or place your mouse cursor over the info icons to find out more about calculation algorithms applied by these options.

An empty calculation card is always generated with "State Budget" option pre-selected.

The "found during tax audit" option is available only when "State Budget" is selected and "Due Date" is later than 1 Jan 2016.

5

Calculate

Click the active "Calculate" button in order to generate the calculation.

Becomes active only when you have filled in the "Amount Due", "Due Date", "Settlement Date" according to the instructions and you decided between the "State Budget", "Local Budget" and "Taxpayer" algorithms.

6

Visualize details or amend input

Click the "Show Details" button to expand the calculation card in order to see the detailed calculation and the allocation per year sections. "Show Details" is replaced by "Hide Details".

Click the "Hide Details" button in order to hide the above mentioned sections.

If you wish to amend the input, click the "Redo" button.

These buttons become visible only after the "Calculate" button has been clicked.

Clicking the "Redo" button takes you to the input card without resetting the initial values and options.

7

Add a new calculation

Click the active "Add New Calculation" button in order to add a new calculation card and reapply steps 1 to 5.

Becomes active only after the "Calculate" button has been clicked.

As long as there is at least one card in the input mode (waiting for you to enter data) "Add New Calculation" will not become active.

A maximum of 12 calculations can be added on screen. Once the maximum number has been reached, this button will disappear and only when the number decreases below 12 will it reappear again.

8

Delete a calculation

Click the "Delete" button placed in the upper right corner of each calculation cad in order to delete it.

This operation cannot be undone and therefore all input and output from that specific card will be lost.

Becomes visible when there are at least two calculation cards on screen.

9

Export calculation(s) to PDF

Click the "Export to PDF" button in order to access the documents' drop-down.

Click the titles of the calculations of interest to select them.

Should you want to include the details section (allocation per year will not be exported) also check the "Include details" check-box.

Once you have finished making your selections, click "Export" to obtain the PDF document.

Becomes visible when at least one calculation is made on screen.

"Include details" becomes active if at least one calculation title is selected.

The "Export" button becomes active if at least one calculation title is selected.

Calculation Method

State Budget

* Named "late payment charges" (Romanian "majorari de intarziere")

** Percentages are as follows:
(i) 0% of the outstanding liabilities if the payment is made within 30 days of the due date.
(ii) 5% if the payment is made within the following 60 days.
(iii) 15% if the payment is made more than 90 days after the due date.

* Non-compliance penalties, due for undeclared / under-declared tax obligations that are assessed as a result of a tax audit. Non-compliance penalties:
- Do not apply if the principal tax obligations (that are undeclared or underdeclared by the taxpayer and assessed during a tax audit) result from the taxpayer applying legal provisions in accordance with interpretations issued by the tax authorities in the form of application norms, instructions, minutes or letters of opinion and communicated to the taxpayer.
- Can be reduced by 75% if the principal tax obligations are settled by payment or offsetting within the legal deadline set out in Article 156 (1) of the Fiscal Procedure Code, or if an installment payment schedule is approved.
- Are increased by 100% if the principal tax obligations assessed result from tax evasion, as set out in a ruling by a court of law.
- Are not assessed if their amount is lower than 50 lei.
- Cannot exceed the amount of the principal tax obligations, except for cases of tax evasion.

Local Budget

* Percentage of tax obligations payable to/from local budgets, calculated for each month or fraction of month, starting from the day following the due date until the date of settlement, inclusive.

Taxpayer

* For amounts to be recovered or refunded from the state budget, taxpayers are entitled to interest starting from the day following expiration of the legal deadline for repayment until the day the amount are settled by any method provided by law. Interest is granted on the request of the taxpayer. (Article 182 of the Fiscal Procedure Code)
For amounts to be refunded from local budgets, the "Local Budget" calculator should be used, as charges due by authorities in the event of late payment are calculated similarly to the late payment charges for amounts due by taxpayers.

Disclaimer

This calculator can be used as a quick-reference tool for estimating late payment interest and penalties related to overdue tax, without taking into account the potential implications of specific circumstances including, without limitation:

  • - The net position of the taxpayer in relation to the state budget of local budgets (amounts payable or receivable, other than those for which the calculator is used).
  • - The order in which tax obligations are settled in accordance with the relevant provisions of the Fiscal Procedure Code.
  • - Potential application of special legal provisions (e.g. reductions or increases, exemptions, cancellations, extensions, scheduling of tax payments).

The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that this information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation.

This tool was prepared based on tax legislation applicable as at 1 October 2017. Before you intend to take any action on the basis of the calculator's results, it is advisable to verify whether the laws or their interpretation have been subject to any changes.

Due to rounding, some totals may not correspond with the sum of separate figures.

Calculator

Select calculations to export
    Title (optional)
    60 characters left
    60 characters left
    Amount Due
    9 digits left
    RON
    9 digits left
    Payable to

    By selecting one of the options below, calculations will be performed for the relevant situation:

    • amounts due to the State Budget
    • amounts due to/from Local Budgets
    • amounts to be recovered by taxpayers from the State Budget

    For tax obligations arisen starting from 1 January 2016 that are undeclared / under-declared by taxpayers and are assessed by tax authorities as a result of a tax audit, non-compliance penalties of 0.08% per day are applicable instead of the 0.01% late payment penalties.

    By selecting this option calculation will change accordingly.

    Due Date
    Settlement Date

    This is the date at which the obligation is settled through payment, offsetting or other methods provided by law (e.g. foreclosure, payment in kind etc.)

    Congratulations!

    Since the Settlement Date is earlier than the Due Date, it looks like no interest, charges, penalties are payable, as compliance is achieved for this payment.

    In order to perform a calculation please select a Settlement Date which is later than the Due Date.

    for an amount of
    RON
    payable to
    found during tax audit
    (non-compliance penalty is due)
    due on
    and settled on
    Interest&Penalties amount to
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    Charges amount to
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    Interest amount to
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    out of wich Interest is
    RON
    and Penalties
    RON
    Delay
    Interest
    Penalties
    Charges
    Interest
    Units of delay
    Period of delay
    Units
    Interest
    Delay
    Level
    Amount
    (RON)
    Charges
    Delay
    Level
    Amount
    (RON)
    Interest
    Delay
    Level
    Amount
    (RON)
    Penalties
    Delay
    Level
    Amount
    (RON)
    Allocation per year
    Interest
    Charges
    Penalties
    Exported Successfully