Governance Emergency Ordinance no. 107/2024 for the regulation of some fiscal-budgetary measures in the field of managing budget receivables and the budget deficit for the general consolidated budget of Romania in 2024, as well as for the modification and completion of some normative acts was published in the Official Monitor no. 905/06.09.2024.

Who benefits from the fiscal facilities provided in this normative act:

These measures apply to all categories of debtors, such as natural or legal persons, under public or private law, associations and other entities without legal personality, natural persons who carry out economic activities independently or practice liberal professions, administrative-territorial units or administrative-territorial subdivisions of the municipality of Bucharest or public institutions.

What is meant by "overdue obligations on August 31st, 2024":

For the purpose of the present measures, the main budgetary obligations outstanding on August 31st, 2024, are:

1. budgetary obligations for which the due date or payment term has been reached until August 31st, 2024, inclusive.
2. the differences in the main budgetary obligations established by taxation decisions communicated up to and including August 31st, 2024, even if the payment deadline stipulated in art. 156 para. (1) of the Fiscal Procedure Code, as well as the differences in main budgetary obligations related to fiscal periods up to and including August 31st, 2024, established by the central fiscal body through a taxation decision issued and communicated by the date of entry into force of this ordinance emergency, as a result of a tax audit;
3. the main budgetary obligations related to the fiscal periods up to and including August 31st, 2024, established by a taxation decision issued ex officio by the fiscal body or by a taxation declaration submitted late by the taxpayer, in the period between September 1st, 2024, and the date of submission of the request to cancel the accessories included;
4. other individualized payment obligations in enforceable titles issued according to the law and existing in the records of the fiscal body in the view of recovery on August 31st, 2024 inclusive, as well as the main budgetary obligations established by bodies other than the fiscal bodies, related to the fiscal periods up to of August 31st, 2024, submitted for recovery to the fiscal authorities in the period between September 1st, 2024 and the date of submission of the request for the cancellation of the accessories inclusive.

The following payment obligations are not considered overdue on August 31st, 2024, inclusive:

1. budgetary obligations for which payment facilities have been granted and are ongoing, according to the law, on August 31st, 2024, inclusive;
2. the payment obligations established in administrative documents, the execution of which is suspended according to the law on August 31st, 2024, inclusive.

Payment obligations which on August 31st, 2024, are in any of the situations provided for in points a and b (facilities for payment and suspended execution) are considered outstanding, and after this date, but not later from November 25th, 2024, inclusive, the payment facilitation loses its validity or, as the case may be, the suspension of the execution of the fiscal administrative act ceases.

I. The measure of cancellation of fiscal obligations accessories

Interest, penalties and all accessories related to the main budget obligations, outstanding on August 31st, 2024, inclusive, are canceled if the following conditions are cumulatively met:

1. all main budgetary obligations outstanding on August 31st, 2024, inclusive, administered by the central fiscal body, are extinguished by any method provided for in the FPC, until the date of submission of the application for cancellation of the accessories inclusive, but no later than November 25th, 2024;
2. are extinguished by any means, until the date of submission of the application for cancellation of the accessories inclusive, all main and accessory budgetary obligations administered by the central fiscal body with payment terms between September 1st, 2024, and the date of submission of the application for cancellation of the accessories inclusive, but no later than November 25th, 2024;
3. the debtor must have submitted all tax declarations, according to the tax vector, by the date of submission of the application for cancellation of the accessories inclusive. This condition is also considered fulfilled if, for the periods in which tax returns were not submitted, the tax obligations were established, by decision, by the central fiscal body;
4. the debtor submits the application for the cancellation of the accessories after properly fulfilling the conditions provided for in letters a)—c), until November 25th, 2024, inclusive, under penalty of forfeiture

This condition is also considered fulfilled if, for the periods in which no tax returns were submitted, the tax obligations were established, by decision, by the central tax body;

Interest, penalties and all accessories related to the differences in main budgetary obligations additionally declared by debtors through a rectification statement correcting the main budgetary obligations with maturities prior to August 31st, 2024, inclusive, administered by the fiscal body, are canceled if certain conditions are met.

Interest, penalties and all accessories related to the main budget obligations with maturities prior to August 31st, 2024, inclusive and extinguished by this date are canceled if certain conditions are cumulatively and properly met.

The interests, penalties and all accessories related to the main budgetary obligations administered by the central fiscal body with maturities prior to August 31st, 2024, inclusive and individualized in taxation decisions issued as a result of a fiscal control in progress at the date of entry into force of this emergency ordinance are canceled if certain conditions are met cumulatively.

How to benefit from cancellation of accessories:

Debtors who intend to benefit from the cancellation of accessory budget obligations can notify the fiscal body of their intention, no later than the date of submission of the request for cancellation of accessories and no later than November 25th, 2024, under penalty of forfeiture.

The request to cancel the accessories submitted by taxpayers under the terms of this emergency ordinance is resolved by a decision to cancel the accessories or, as the case may be, a decision to reject the request to cancel the accessories.

II. Cancellation of accessories for debtors who benefit from payment deferral

Debtors who, on the date of entry into force of this emergency ordinance benefit from the staggered payment of tax obligations, as well as those who obtain staggered payment in the period between the date of entry into force of this emergency ordinance and the date of November 25th, 2024 inclusive, may benefit from cancellation of interest, penalties and all accessories under the conditions set out above.

Debtors who, on the date of entry into force of this emergency ordinance, benefit from the staggered payment of their obligations, as well as those who obtain staggered payment in the period between the date of entry into force of this emergency ordinance and the date of November 25th, 2024 inclusive, may benefit, based on the request for the cancellation of interest, penalties and all accessories, submitted up to and including November 25th, 2024, for the cancellation of interest, penalties and all accessories if the staggered payment is completed by the date of submission of the request for cancellation of accessories inclusive, but not no later than November 25th, 2024.

In this case, the accessories included in the staggered installments with payment terms after the date of entry into force of this emergency ordinance and the date of November 25th, 2024, inclusive, paid together with the staggered installment payment, are returned according to the provisions of Law no. 207/2015, with subsequent amendments and additions.

To remember:

The procedure for applying the provisions regarding the cancellation of accessories is approved by order of the Minister of Finance, upon the proposal of the president of the National Agency for Fiscal Administration, in the case of budgetary obligations administered by the central fiscal body, within a maximum of 15 days from the date of entry into force of this emergency orders.

III. Cancellation of accessories in the case of obligations owed to local budgets

In the case of budgetary obligations outstanding on August 31st, 2024, inclusive, owed to local budgets, the procedure for canceling the accessories is applied by the administrative-territorial units, optionally, provided that the application of these provisions is established by a decision of the local council.

IV. Cancellation of fiscal obligations in the case of natural person debtors  

Debtors, natural persons, who register overdue main budgetary obligations on August 31st, 2024, inclusive in an amount less than 5,000 lei inclusive, can benefit from:

1. cancellation of a percentage of 50% of the main budgetary obligations, outstanding on August 31st, 2024, inclusive, in the situation where they are extinguished in percentage of 50% by the date of submission of the request for cancellation, but no later than the date of November 25th, 2024;
2. cancellation of interest, penalties and all accessories related to the main budgetary obligations, outstanding on August 31st, 2024, inclusive, if the condition from letter a) is met.

Debtors, natural persons, who register overdue main budgetary obligations on August 31st, 2024, including an amount greater than 5,000 lei, can benefit from:

1. cancellation of a percentage of 25% of the main budget obligations, outstanding on August 31st, 2024, inclusive, in the situation where they are extinguished in percentage of 75% by the date of submission of the request for cancellation, but no later than the date of November 25th, 2024;
2. cancellation of interest, penalties and all accessories related to the main budgetary obligations, outstanding on August 31st, 2024, inclusive, if the condition from letter a) is met.

Debtors for whom, after the entry into force of this emergency ordinance, the sums representing a percentage of 50%, respectively 25%, as the case may be, of the budget obligations outstanding on August 31st, 2024, inclusive, as well as interest, penalties, were extinguished and all the accessories that can be canceled according to the provisions above, they are returned according to the provisions of the Fiscal Procedure Code.

Important!

The provisions regarding the procedure for canceling accessories (both for legal entities and for natural persons) do not apply to budgetary obligations:

1. which are the subject of ongoing criminal proceedings on the date of entry into force of this emergency ordinance or which begin after this date;
2. established by final criminal decisions;
3. representing damages that are subject to art. 10 of Law no. 241/2005 for preventing and combating tax evasion.

By applying for cancellation, taxpayers declare on their own responsibility that they are not in any of these situations.

V. The 3% bonus for regular payers

Taxpayers paying profit tax, regardless of the declaration and payment system, as well as taxpayers paying tax on the income of micro-enterprises, benefit from a bonus of 3% of the annual profit tax and the tax on the income of micro-enterprises, related to the fiscal year 2024/modified fiscal year starting in 2024, as the case may be.

The bonus is granted by the fiscal body with the compliance of the following conditions by the taxpayer:

1. has submitted all declarations according to the fiscal vector;
2. the annual profit tax/tax on the income of micro-enterprises, related to the year 2024/the modified fiscal year starting in 2024, as the case may be, are extinguished in full and at the deadlines provided by law;
3. does not register any other outstanding tax/budgetary obligation at the legal deadline for submitting the declarations declaring the annual profit tax related to the year 2024/the modified fiscal year starting in 2024, respectively declaring the tax on the income of micro-enterprises related to the fourth quarter of the fiscal year 2024, according to the law.

For the calculation of the bonus, the following are considered:

1. in the situation where the taxpayer redirects amounts from the annual profit tax, according to the law, these are not considered when determining the bonus;
2. for taxpayers paying tax on the income of micro-enterprises, the percentage related to the bonus is applied to the tax due for the entire fiscal year determined by adding up the taxes on the income of micro-enterprises due quarterly, according to the law;
3. in the case of micro-enterprises that become profit tax payers in 2024, the percentage related to the bonus is applied both to the income tax of micro-enterprises and to the annual profit tax, taxes determined according to letter b), respectively letter a).

In order to grant the bonus, the central fiscal body draws up a report approving this facility for legal person taxpayers who meet the conditions set out above based on a list automatically edited from the IT application.

The amounts that are the subject of the bonus are not returned but are used to offset the taxpayer's fiscal obligations in accordance with the provisions of the Fiscal Procedure Code.

(Copyright foto: 123RF Stock Photo)