Emergency Ordinance no. 107/2024 | TaxFlash nr.108


The Romanian Government adopted the Emergency Ordinance no. 107/2024 (GEO no. 107/2024), published in the Official Gazette Part I no. 905 from 6th September 2024, which introduces certain tax facilities for taxpayers, respectively:

A. CANCELLATION OF INTEREST, PENALTIES AND OTHER ACCESSORIES RELATED TO MAIN BUDGET OBLIGATIONS REMAINING AS OF AUGUST 31st 2024

All categories of taxpayers can benefit from the cancellation of interest, penalties and other accessories related to the main budgetary obligations outstanding on 31 August 2024, under certain conditions. The subject of the cancellations are the interests, penalties and other accessories related to:

  • to all budget debts for which the payment term was up to and including 31 August 2024, benefiting from cancellation even companies in insolvency;
  • the main budgetary obligations established by tax assessment decisions communicated up to and including 31 August 2024, even if the payment deadline has not been yet due, as well as the main budgetary obligations related to the fiscal periods up to and including 31 August 2024, established by the taxation decision communicated by the date of entry into force of this GEO;
  • the obligations established ex officio by the tax authorities or by the tax declaration submitted late by the taxpayer, between 1 September 2024 and the moment of submitting the request to cancel the accessories;
  • other payment obligations identified by enforceable titles, existing in the tax records or established by other authorities and submitted for recovery until 31 August 2024, as well as those that arise between 1 September 2024 and the submission of the application for the cancellation of the accessories.

The conditions that must be fulfilled by taxpayers to benefit from the tax amnesty are:

  • (i) for the cancellation of the accessories related to the outstanding main budgetary obligations on 31 August 2024 including:
    • a) Extinguishment of all outstanding principal obligations on 31 August 2024 until the date of submission of the request for the cancellation of the accessories, but no later than 25 November 2024;
    • b) Extinguishment of current, main and accessory budgetary obligations, with payment terms between 1 September 2024 and the date of submission of the cancellation request, no later than 25 November 2024;
    • c) All tax declarations must be submitted in accordance with the tax vector, until the date of submission of the request to cancel the accessories;
    • d) Submission of a request for the cancellation of the accessories by 25 November 2024.

The accessories related to the main budget obligations with maturities prior to and including 31 August 2024 and extinguished by this date are canceled if the conditions provided for in points b) - d) are met cumulatively and appropriately.

  • (ii) for the cancellation of accessory obligations related to the differences in main budgetary obligations additionally declared by rectifying statements, obligations with maturities prior to and including 31 August 2024:
    • a) The submission of the rectifying declaration should take place starting from 1 September 2024 and up to and including the date of submission of the application for the cancellation of the accessories, but no later than 25 November 2024;
    • b) The budgetary obligations additionally declared through the rectification declarations must be extinguished by the date of submission of the cancellation request, but no later than 25 November 2024;
    • c) the conditions stipulated in points b) -d) above are met.

The provisions also apply in the case of correcting errors in VAT statements, carried out in accordance with legal regulations.

  • (iii) for the cancellation of accessory obligations related to the main budgetary obligations with maturities prior to and including 31 August 2024 and individualized through taxation decisions issued as a result of a tax audit in progress at the date of entry into force of the GEO:
    • a) Extinguishment of all the differences in main budgetary obligations established by the tax decision until the payment term specified by law;
    • b) Submission of the request for cancellation within 90 days from the notification of the decision to impose.

Ongoing tax control is understood as that tax control for which the tax decision has not been communicated until the date of entry into force of this GEO (September 6th 2024).

In the case of fiscal inspections that are to begin after the date of entry into force of the GEO, taxpayers can benefit from the cancellation of the accessories if they submit rectification declarations within 20 days from the date of entry into force of the GEO. The tax authorities will notify the taxpayers of the existence of a documentary verification in progress, within 20 days from the date of entry into force of the GEO.

  • (iv) For ancillary obligations related to VAT refund requests pending resolution on 25 November 2024, which after this date are resolved with total or partial rejection, taxpayers benefit from cancellation if they pay the budgetary obligations on which the cancellation depends, not extinguished by compensation with the individualized amounts in the reimbursement request, within 30 days from the date of communication of the rejection decision.

Taxpayers who intend to benefit from the cancellation of ancillary tax obligations may notify the competent tax authority of their intention, no later than the date of submission of the application for cancellation of accessories and no later than 25 November 2024. After receiving the notification, the fiscal body checks whether the debtor has fulfilled its declarative obligations according to the fiscal vector by the date of submission of the notification, performs the extinguishers, compensations and any other operations necessary to establish with certainty the budgetary obligations that are a condition for granting the fiscal facility.

Taxpayers who have extinguished obligations that can benefit from amnesty according to this ordinance can request their restitution.

There are certain situations when the tax amnesty does not apply, such as for accessories related to budget obligations for which payment facilities have been granted and are ongoing, according to the law, on 31 August 2024 inclusive.

In the case of accessories related to budgetary obligations outstanding on 31 August 2024 inclusive and due to local budgets, the cancellation is optional, if it will be established by a decision of the local council. 

The detailed application procedure is approved by Order of the Minister of Finance, within a maximum of 15 days from the date of entry into force of the GEO.

B. FACILITIES GRANTED TO INDIVIDUALS

In addition to the facilities described at point A above, natural persons who have outstanding tax obligations on 31 August 2024 can also benefit from the following tax facilities:

  • In the case of accumulated outstanding amounts of up to 5,000 lei, a percentage of 50% of them can be canceled, provided that the difference of 50% of the main outstanding obligation is paid by the date of submission of the cancellation request, but no later than 25 November 2024.
  • In the case of cumulative outstanding amounts greater than 5,000 lei, a percentage of 25% of them can be canceled, provided that the difference of 75% of the main outstanding obligation is paid by the date of submitting the cancellation request, but no later than 25 November 2024.

C. FACILITIES FOR CORPORATE INCOME TAX / MICRO-ENTERPRISES INCOME TAX PAYERS

Taxpayers paying corporate income tax / micro-enterprises income tax benefit from a bonus of 3% of the annual corporate income tax / micro-enterprises income tax related to the fiscal year 2024 / the modified fiscal year starting in the year 2024.

The bonification also applies if at the end of fiscal year 2024/the amended fiscal year starting in 2024 taxpayers owe corporate income tax at the level of the minimum turnover tax.

The facility is granted ex officio by ANAF after the deadline for submitting the annual corporate income tax return / microenterprise income tax return for quarter IV 2024, by issuing a decision, as long as the following conditions are met by the taxpayer:

  • has submitted all declarations according to the fiscal vector;
  • the corporate income tax/microenterprise income tax related to the year 2024/the modified fiscal year starting in 2024 are extinguished in full and in due time;
  • does not register any other outstanding fiscal/budgetary obligation at the legal deadline for submitting the statements declaring the annual corporate income tax related to the year 2024/ the micro-enterprises income tax related to the fourth quarter of 2024.

The amounts that are the subject of the bonus are not returned, but are used to offset the taxpayer's fiscal obligations in accordance with the provisions of art. 167 of the Fiscal Procedure Code.

The application procedure is approved by Order of the Minister of Finance, within a maximum of 45 days from the date of entry into force of this GEO (September 6th 2024).