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Romania: Additional tax relief measures, clarifications (COVID-19)

Romania: Additional tax relief measures, clarifications

Most of the new fiscal and tax measures adopted by the government pursuant to an emergency ordinance (GEO 48/2020 (16 April 2020)) will apply during the coronavirus (COVID-19) pandemic emergency period and for a specified period after the termination of the emergency period.

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In particular, the ordinance includes measures providing relief from penalties and collection procedures, the deferral of payment of certain taxes and import value added tax (VAT), and clarifications of the taxation for unemployment allowance payments and other relief provided to individuals during the emergency period. Other measures allow companies to defer certain financial reporting obligations and ease the prerequisites for VAT refunds.

In summary, the emergency ordinance provides, among other relief, that:

  • Financial statements may be submitted up to 31 July 2020.
  • “Specific tax” is exempt from payment (that is, taxpayers liable for the specific tax will not be required to remit the tax for the period during which they interrupt their business activity either totally or partially during the state of emergency period).
  • Micro-enterprises can deduct sponsorship grants made to public institutions and authorities.
  • Benefits-in-kind granted to employees in preventive isolation are exempt from tax and social contributions.
  • VAT refund will be made without prior audit.
  • Import VAT for denatured ethyl alcohol using in products to combat COVID-19 is deferred.


Read an April 2020 report prepared by the KPMG member firm in Romania

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