Tax Flash No. 27/2011

Order 1252/2011 on the applicability of the provisions of article XI of Government Ordinance 30/2011 amending and completing the Fiscal Code, as well as regulating certain financial-fiscal measures was published in the Official Gazette 855/2011

The Order brings clarifications on the procedure of granting the tax incentives (i.e. cancellation / reduction of the late payment penalties / charges for the tax liabilities outstanding as of 31 August 2011) for the social security contributions due to the social security budget by individuals, other than those for which the collection of revenues is handled by the National Agency for Fiscal Administration (“Incentives”).

The main clarifications refer to:

The Order applies to the Incentives granted by the county pension houses and by the Bucharest Pension House, respectively, for the payment of obligations administrated / established by these authorities.
The “principal payment obligations outstanding as of 31 August 2011” are defined as the social security contributions due by 1 August 2011 and outstanding as of 25 August 2011.
In order to benefit of such Incentives, the taxpayers may file an application requesting the status of the outstanding payment obligations to be settled and of those subject to the Incentives. Also, the Order describes the procedure for granting such Incentives.