Tax Flash nr. 54

In the Official Gazette no. 423 dated on 21^st of April 2021 was published the Government Emergency Ordinance no. 30/2021 regarding some fiscal measures

The GEO no. 30/2021 approved the procedure for applying the provisions regarding the deduction of the early education expenses incurred between November 2020 and March 2021 from other taxes than the corporate income tax.

Therefore, the amount representing the early education expenses incurred between November 2020 and March 2021, which exceeds the corporate income tax due, is deducted from the the salary income tax withheld by the taxpayer for employees, from the VAT due or from the excise duties due, in this specific order, through on a regularization statement.

The aforementioned regularization statement was approved by the Order no. 653/2021 for the approval of the model and the manner of submission and management of Form 711 "Statement of regularization for early education expenses", published in the Official Gazette no. 429 dated on 23^rd of April 2021.

The deadline for submitting the regularization statement is set on 25^th of April 2021, with the following exceptions:

• in case of taxpayers which opted for a financial year other than the calendar year, the statement should be submitted for each corporate income tax return period, but not later than 25^th of August 2021 or by the 25^th day of the sixth month following the end of the modified fiscal year;
• in case of taxpayers which apply the annual corporate income tax return system, the statement should be submitted until 25^th of March 2022 or until 25^th of June 2022, as the case may be.

The early education expenses incurred between November 2020 and March 2021 shall be deducted, in order, from the payroll tax withheld by the taxpayer for employees, from the VAT due or from the excise duties due, on the due date, declared in the Form 112, in the VAT return, respectively in the Form 100 which have the same deadline for submission as the declaration by which the deduction of these expenses from the due profit tax was made.

If the deadline for submitting the return deduction for early education expenses from the corporate income tax due is the same as the quarterly deadline for submitting the Form 112, the amount which exceeds the corporate income tax due is deducted from the payroll tax for the last month of the quarter.