Other fiscal provisions Ordinance 48/2020

In the Official Gazette (Part I) no. 319 of April 16, 2020, the Emergency Ordinance no. 48/2020 on some financial-fiscal measures that bring several changes, as follows:

  1. Extension of the deadline for submitting the financial statements for 2019 until July 31, 2020 – for all categories of entities:

For the submission of the annual financial statements related to the financial year 2019, respectively of the annual accounting reports concluded on December 31, 2019, the terms provided in art. 36 para. (1) and (3) and art. 37 of the Accounting Law no. 82/1991, republished, with subsequent amendments and completions, is extended until July 31, 2020 inclusive.

Therefore, the deadline for submitting the financial statements for SRL, which is 150 days from the end of the financial year, and the deadline for submitting the statements to the non-governmental organizations (ONG), which is 120 days from the closing date of the financial year, are postponed.

  1. Additional regulations for sponsorships made by micro-enterprises:

Micro-enterprises will be able to sponsor public institutions and reduce the amounts from the micro-enterprise income tax to the value of 20% of the micro-enterprise income tax due for the quarter in which they registered the respective expenses, only based on the sponsorship contract, without the obligation to register the respective beneficiary entities in the Register of cult entities / units for which fiscal deductions are granted.

Thus, in Article 56, a new paragraph 15 is inserted after paragraph 14, with the following content:

(1.5) The provisions of par. (1.1) – (1.4) also applies to the sponsorships performed, according to the provisions of Law no. 32/1994, with the subsequent modifications and completions, to the public institutions and authorities, including the specialized authorities of the public administration. In this case, the deduction of the amounts representing sponsorships from the income tax of the micro-enterprises, within the limit provided in par. (1.1), is performed based on the sponsorship contract, without the obligation to register the respective beneficiary entities in the Register of cult entities / units for which fiscal deductions provided at art. 25 para. (41). “

  1. The benefits in kind granted to employees in isolation are not taxable. “

Taxable income is not considered and is not subject to social contributions: benefits in kind granted to individuals who earn income from salaries and assimilated to salaries as a result of occupying positions considered by the employer / payer essential for carrying out the activity and which are in preventive isolation at work or in specially dedicated areas where persons from outside do not have access, for a period established by the employer / payer, in case of state of siege or emergency, according to the law.

  1. Elimination of the fiscal facilities for the technical unemployment indemnity and the one regarding the parental leave for certain categories of activities.

By derogation from the provisions of art. 60, 1381 and 154 para. (1) letter r) of Law no. 227/2015 on the Fiscal Code, with subsequent amendments and completions, during the state of emergency established by decree issued by the President of Romania, for the allowances provided in art. XI para. (1) and art. XV of the Government Emergency Ordinance no. 30/2020 for the modification and completion of some normative acts, as well as for the establishment of some measures in the field of social protection in the context of the epidemiological situation determined by the spread of the SARS-CoV-2 coronavirus, with the subsequent modifications and completions, and at art. 3 of Law no. 19/2020 regarding the granting of free days to parents for the supervision of children, in case of temporary closure of educational units, with subsequent amendments and completions, supported by the unemployment insurance budget, respectively from the state budget, no fiscal facilities are granted.

Attention! These provisions apply to benefits granted from the unemployment insurance budget or the state budget starting with April 2020.

  1. Recovery of ethyl alcohol.

There are several changes regarding the rules for the capitalization of ethyl alcohol, alcoholic beverages, as well as energy products entered, according to the law, in the private property of the state.

Reverse taxation is applied for VAT related to the import of denatured ethyl alcohol.

The provision applies to imports from third countries for ethyl alcohol intended for the production of disinfectants and only if the importer holds the authorization for “end user” in respect of excise duties. The reverse charge is valid only during the state of emergency.

6. Publication of the list of goods for which the effective payment of VAT is not made to the customs authorities

Publication of the list of goods. These are mainly medicines, protective equipment and machines for the production of protective masks, other devices or medical equipment and sanitary materials, which can be used in preventing, limiting, treating and combating COVID-19, completely denatured ethyl alcohol, used for the production of disinfectants, during the period for which the state of emergency was established.

In the case of the import of completely denaturing ethyl alcohol, only importers who have an end-user authorization, valid at the date of import, benefit from this provision.

The tax related to these imports made during the fiscal period is highlighted by the importers in the VAT return both as the collected tax and as the deductible tax (reverse charge is made).

7. Provisions for gambling operators

In 2020, the gambling operators provided by EMERGENCY ORDINANCE (OUG) 77/2009 regarding the organization and operation of gambling whose licenses for organizing gambling fall under the incidence of art. 332 of EMERGENCY ORDINANCE (OUG) 1/1999, may formulate requests for the reauthorization of the activity until the latest within 90 days from the date of cessation of the declared state of emergency.

During the state of emergency decreed in 2020, the payment obligations related to the authorizations for the exploitation of traditional gambling provided by EMERGENCY ORDINANCE (OUG) no. 77/2009 is suspended. For these, the sanctions provided by EMERGENCY ORDINANCE (OUG) no. 77/2009, regarding the non-payment of the taxes related to the gambling exploitation authorizations, if their payment is made within maximum 30 working days from the cessation of the declared state of emergency.

  1. Exemptions from the payment of the specific tax during the state of emergency

The taxpayers obliged to pay the tax specific to some activities, according to Law no. 170/2016, for 2020, do not owe specific tax for the period in which they interrupt the activity totally or partially during the state of emergency declared. These taxpayers recalculate, accordingly, the specific tax established according to Law no. 170/2016, corresponding to the year 2020, by dividing the specific annual tax by 365 calendar days and multiplying by the number of days corresponding to the period in the calendar year in which it carried out the activity. The period in which the taxpayers carried out the activity is determined by deducting from the number of 365 calendar days the number of days corresponding to the period in which they interrupted the activity totally or partially during the state of emergency declared.

However, 2 conditions must be met:

* interrupt the activity totally or partially and hold the certificate for emergency situations issued by the Ministry of Economy, Energy and Business Environment;

* is not insolvent according to the information available on the website of the National Office of the Trade Register.

  1. The activity of the Lottery of fiscal vouchers is suspended.

Starting with the date of entry into force of this emergency ordinance, the monthly and occasional draws of the Lottery of fiscal vouchers are suspended.The draws of the Lottery of fiscal vouchers are resumed within 90 days from the date of cessation of the state of emergency.

  1. Specific regulations regarding VAT refund.

The VAT refund is made by subsequent control, but conditioned for certain categories of taxpayers.

This provision does not apply to:

  1. a) the returns with the negative amount of value added tax with reimbursement option for which, until the date of entry into force of this emergency ordinance, the fiscal inspection was started in order to solve them;
  2. b) returns with negative amounts of VAT with the option of reimbursement, submitted by large taxpayers and medium taxpayers that are settled after carrying out the anticipated fiscal inspection, in case:

(i) the taxpayer has in the fiscal record deeds that are sanctioned as crimes;

(ii) the central fiscal body, based on the information held, finds that there is a risk of undue reimbursement;

(iii) for the respective taxpayer the voluntary liquidation procedure has been initiated or the insolvency procedure has been opened, except for those for which a reorganization plan has been confirmed, under the conditions of the special law;

  1. c) returns with negative amounts of VAT with reimbursement option, submitted by other taxpayers than those provided in let. b), which is solved after performing the anticipated fiscal inspection, in case:

(i) the taxpayer has in the fiscal record deeds that are sanctioned as crimes;

(ii) the central fiscal body, based on the information held, finds that there is a risk of undue reimbursement;

(iii) for the respective taxpayer the voluntary liquidation procedure has been initiated or the insolvency procedure has been opened, except for those for which a reorganization plan has been confirmed, under the conditions of the special law;

(iv) the taxpayer submits the first statement with negative amounts of VAT with reimbursement option, after registration for VAT purposes;

(v) the balance of the negative amount of VAT claimed for reimbursement comes from more than 12 monthly reporting periods, respectively 4 quarterly reporting periods.

For the amounts reimbursed in accordance with the provisions of this article, the subsequent fiscal inspection is decided based on a risk analysis.

  1. The payment rescheduling is exempt from interest and delay penalties during the emergency.

This regulation is in fact a postponement of the payment rescheduling, provided that the resumption of payments is made on the basis of a new rescheduling schedule, within 30 days from the lifting of the state of emergency.

  1. Specific regulations regarding forced executions.

The forced executions by summons and by auction of the budgetary receivables are suspended or not, except for those that execute final court decisions pronounced in criminal matters.