Emergency Ordinance (OUG) no.20 for amending and supplementing Law no. 207/2015 on the Tax Procedure Code, as well as for amending Government Ordinance no. 6/2019 on the establishment of certain tax facilities was published in the Official Gazette (Part I) no.290 of 6 April 2023.
Changes to the classic instalment schedule:
The central tax authority grants deferrals of payment for a period of up to 5 years at the request of debtors if the conditions for granting them are met. For debtors who do not own assets to provide security in the amount specified and are unable to provide any security or the amount of security provided is less than 50% of the amount of outstanding tax liabilities subject to the payment relief, the deferment is granted for a maximum of 6 months.
The old provisions referred to the maximum period of 6 months only for debtors who cannot provide any security.
Therefore, the 6-month deadline also applies to persons whose securities are less than 50% of the amount of their tax liability.
Payment deferment is also granted for tax/budgetary obligations representing European funds or national public funds related to European funds.
Please note that by OUG 20/2023, payment deferment is no longer granted for EXCISE DUTIES
Guarantees will also be provided for tax liabilities deferred for payment, as well as those subject to deferred payment of up to 5,000 lei in the case of individuals, 10,000 lei in the case of unincorporated associations, respectively, 20,000 lei in the case of legal entities.
According to the new regulations, the taxpayer may submit a single request for modification of the decision to defer payment in a calendar year or, where appropriate, a fraction of a calendar year.
It should be noted that prior to the issuance of OUG no. 20/2023, two requests for amendment could be submitted.
In addition, the provision according to which, in the case of debtors who do not own property, interest is due, calculated and communicated for the main tax liabilities deferred for payment, after the end of the deferment for payment or, as the case may be, at the date of the loss of validity of the deferment for payment, has been eliminated.
The debtor may apply to the competent tax authority to maintain a deferment whose validity has been lost due to non-compliance with certain conditions only once in a calendar year.
Please note that prior to the issuance of OUG no. 20/2023, two applications for maintaining the deferment could be submitted.
Amendments concerning the simplified form of instalments:
In the field of tax payment deferral – simplified OUG 20/2023 provides:
- elimination from the scope of the simplified payment deferral of:
- tax obligations representing excise duties,
- taxes and compulsory social contributions withheld at source or withheld by withholding at source as defined in Article 7 point 47 of the Tax Code,
- taxes related to gambling activities as regulated in the Government Emergency Ordinance no. 77/2009 on the organization and operation of gambling, with subsequent amendments and additions.
- reduction of the number of requests for modification/maintenance of the payment deferment from two to one during the period of validity of the payment deferment.
- elimination of the possibility of increasing the duration of the deferment of payment.
- increase the interest rate for deferred payment obligations from 0.01% per day (3.65% per year) to 0.02% per day (7.3% per year).
- elimination of the possibility to cumulate a classic payment deferral with a simplified payment deferral.
In the area of restructuring of budgetary obligations, the regulation provides for a reduction in the number of requests for modification/maintenance from two to one in a calendar year or, where appropriate, a fraction of a calendar year.
Amendments to OG no.6/2019 on the establishment of certain tax facilities:
According to OUG 20/2023, the debtor may submit only one request for modification of the relief decision in a calendar year or, if applicable, in a fraction of a calendar year.
Previously, two applications for modification of the relief decision could be submitted.
The debtor may apply to the competent tax authority to maintain a remission whose validity has been lost due to non-compliance with certain conditions only once in a calendar year or in a part of a calendar year, if he submits an application to this effect before all the budgetary obligations which were the subject of the remission have been extinguished.
Please note that prior to OUG no. 20/2023, two applications for the maintenance of the remission could be submitted.
Legal basis:
- OUG (Emergency Ordinance) 20/2023 for the amendment and completion of Law no.207/2015 on the Tax Procedure Code, as well as for the amendment of Government Ordinance no.6/2019 on the establishment of certain tax facilities;
- Tax Procedure Code, as amended and supplemented.