Government Ordinance no. 6 published in the Official Gazette no. 648 of 5 august 2019 (GO 6/2019), that has entered into force on 8 August 2019, together with the implementation Norms as detailed below establish the legal background according to which taxpayers may benefit of the following tax relief measures:

  1. Structuring measures of the tax liabilities due to the state budget as at 31 of December 2018 for debts of at least RON 1 million (implementation norms approved through Order 2810/2019)
    • can be applied by the debtors - legal entities - that (i) encounter payment difficulties or (ii) may enter into an insolvency procedure and that (iii) have outstanding liabilities as at 31 December 2018 equal or greater than RON 1 million;
    • applicants need to fulfill certain conditions, such as:
        • not to benefit of a payment rescheduling facility;
        • to present a restructuring plan and a test of the prudent private creditor, prepared by an independent expert;
        • not to be under the insolvency procedure or dissolved;
        • to have all the tax returns submitted with the tax authorities;
        • to fulfill the test of the private creditor.
    • a specific request needs to be submitted with the tax authorities within 6 months as of the entry into force of the GO 6/2019;
    • the request is subject to approval of the tax authorities and, if approved, the taxpayer will be subject to a permanent supervisory and verification process performed both by the independent expert and by the representatives of the tax authorities.
  2. Waive of late payment interest and penalties related to principal tax liabilities due to the state budget (implementation norms approved through Order 3126/2019)
    • can be applied by the following debtors:
        • legal entities, individuals or entities without legal personality, which, as at 31 December 2018, register outstanding principal tax liabilities below RON 1 million;
        • individuals or entities without legal personality that register, as at 31 December 2018, principal tax liabilities of at least RON 1 million.
    • principal tax liabilities outstanding as at 31 December 2019 can represent:
        • tax liabilities outstanding or for which the payment deadline was 31 December 2018 – including the ones arising from submission of amended tax returns;
        • principal tax liabilities established through tax assessment decisions communicated up to 31 December 2018, even though the payment deadline has yet to pass;
        • other payment obligations as provided by enforcement claims issued according to the provisions in force, registered in the evidences of the tax authorities to be recovered as at 31 December 2018.
    • the waive of accessories is applicable in relation to the above mentioned principal tax liabilities provided that:
        • the cancellation request is submitted no later than 15 December 2019;
        • all outstanding budgetary tax liabilities are settled;
        • all tax returns are submitted, as applicable.

A specific situation arises for tax audits in progress at the date when GO 6/2019 entered into force – in principle, taxpayers in such situations can benefit of the tax relief measures for such cases for the tax liabilities assessed by the audit team further to the inspection taking place.