In case of temporary suspension of business, the competent tax authority can approve, upon the request of the relevant tax payer, other deadlines or conditions for filing the following tax returns – forms 100, 101, 102, 103, 104, 120, 130 and 300.
In order to be subject to the derogation status for tax return, tax payers must fulfil all the following conditions during the entire term when such status applies:
- not to conduct any kind of business;
- not to obtain any kind of operating revenue, financial revenue, extraordinary revenue and / or other elements that are similar to revenue;
- not to have available any employed staff and not to pay income for which withholding tax is retained;
- to be registered with tax authorities with all the obligations they have fulfilled in relation to tax returns and payments;
- not to have pending for settlement any VAT return with negative VAT amounts and refund option or any request for the return of taxes and contributions;
- not to be subject matter to any ongoing tax audit measure;
- not to be registered on the list of tax payers that are declared inactive;
- in case of tax payers who are juristic persons and have been incorporated under the Company Law no. 31/1990, in new version, complete with subsequent modifications and completions, temporary suspension of business must be registered in the Trade Register, according to the provisions of art. 237 of the aforementioned law.
For the part of tax year that is exterior to the term in which the derogation status applies to tax returns, tax payers must file the forms 101, 120 and 130 upon the terms that are stipulated by the law (for ex. for the term January 1st, 2009 until the term when the derogation status applies)
Apart from that, it is compulsory to file tax returns according to the tax vector, from the date the application is filed until the date the derogation status is approved for tax returns.
During the term that is subject to the derogation status, the obligation of preparing annual tax reports and accounting reports shall still be valid according to the provisions of the Accounting Law no. 82/1991, in new version.
Necessary documents (photocopy):
- application for granting the derogation status for tax returns;
- a copy of the register excerpt from the Trade Registry, regarding the status of companies and the temporary suspension of their business;
- decision of the shareholder(s) regarding the temporary suspension of business;
- conclusions pronounced by the delegated judge;
- confirmation of company details, issued by the Trade Registry;
- certificate regarding the registration of the modifications, issued by the Trade Registry.
Documentation shall be filed with the office of the competent tax institution, for the administration of the tax payer.
Term for settlement: 30 days as of the date of filing the documents
The approved derogation status of tax returns ceases to be valid:
- upon the date that has been approved for its cessation;
- starting with the month when any of the conditions stipulated under Chapter A, point 3 is no longer valid;
- starting with the month in which, according to law, new obligations are set up regarding tax returns in relation to taxes of any kind and contributions that are due to the state budget.
In case the derogation status regarding tax returns ceases, the tax payer shall reenter ex officio the usual tax return system.