Fiscal measures in the context of the economic difficulties: corporate income tax and VAT for certain imports

Article provided by Tuca Zbarcea si Asociatii

In the context of the economic and financial difficulties caused by the spread of the COVID-19 virus, the Romanian Government has adopted the Emergency Ordinance No. 33/2020 regarding certain fiscal measures and the amendment of certain normative acts, published in the Official Gazette no. 260/30.03.2020. 

1. Taxpayers paying on time the corporate income tax due on 25 April 2020 will receive a bonus of 5% or 10% 

The corporate income tax payers, regardless of the declaration and payment system, who pay the tax due for the first quarter of 2020, respectively for the advance payment correspondent to the same quarter, until 25 April 2020 inclusive, will benefit from a bonus applied on the corporate income tax due. 

More specifically, the large taxpayers will benefit from a 5% bonus, while small and medium taxpayers will benefit from a 10% bonus. 

The facility also applies to taxpayers having the fiscal year different from the calendar year, if they pay the tax due quarterly until the deadline within the period 25 April – 25 June 2020. 

Also, the same bonuses will apply to companies falling under the Law no. 170/2016 regarding the specific tax for certain activities, as well as for companies subject to the microenterprise taxation regime. 

The taxpayers establish the payable corporate income tax/microenterprise tax by diminishing the tax due with the bonus computed as per the above provisions. 

For corporate income taxpayers, the bonus will be included separately in the annual corporate income tax return. 

2. VAT is no longer payable for imports of goods used for the prevention and treatment of COVID-19 

VAT is no longer payable at the moment the import customs formalities are performed, for imports of certain products used for the prevention and fight against the spread of COVID-19 virus, which are performed during the period when state of emergency is in force and 30 days after the state of emergency period has ceased. VAT related to such imports will be registered via the reverse-charge mechanism. 

The incentive is available for the import of certain medicine, protection equipment, other devices or medical equipment and sanitary materials which can be used for the prevention, limitation, treatment and fight against COVID-19 virus, these goods being specifically mentioned in the annex to the Ordinance.