Tax Flash no.16/2020 – Additional fiscal measures in the context of COVID-19

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27.10.2020 –Emergency Ordinance no.181/2020 regarding certain fiscal-budgetary measures and for the amendment and completion of some normative acts as well as for the extension of certain deadlines was published in Official Gazette 988/2020


  • The cost of medical tests for diagnosing COVID-19 infection are considered deductible when calculating the corporate income tax or individual income tax for independent activities, during the state of emergency or state of alert.
  • The costs of medical tests for diagnosing COVID-19 infection performed by the employer / income payer, on his own initiative, for individuals who derive salary or assimilated to salary income, in order to ensure the safe and secure work activity are not subject to tax on income and social contributions during the state of emergency or state of alert.


  • Tax liabilities due from 21 March 2020 and not paid are not considered overdue and no interest and late payment penalties will be calculated and due in this respect until 25 December 2020.
  • The deadline until which the VAT requested for reimbursement through the negative VAT returns with the option to reimburse, submitted within the legal deadline, is reimbursed by the central fiscal authority with the tax inspection being performed subsequently, ,with certain exceptions, is extended until 25th January.


  • A simplified alternative procedure for granting debt payment rescheduling for a maximum of 12 months is established for the main and ancillary budgetary obligations whose payment deadline has expired after the date on which the state of emergency was triggered and until the date of issue of the tax attestation certificate.
  • Taxpayers, regardless of ownership, including those who have an ongoing payment facility under the Fiscal Procedure Code that do not have outstanding tax obligations at the time of the declaration of a state of emergency, or have been paid until the issuance of the fiscal certificate can benefit from the procedure.
  • In order to benefit from the rescheduling, the taxpayer must meet the following conditions:

a) to submit an application by December 15, 2020, inclusive. Upon request, the debtor may attach the staggered schedule containing the proposed amount of the staggered rates;

b) not to register outstanding budgetary obligations at the date of declaring the state of emergency and subsequently unpaid.

c) not to be in insolvency proceedings;

d) not to be dissolved according to the legal provisions in force;

e) to have submitted all the fiscal declarations;

f) his liability has not been established according to the legislation on insolvency and / or joint and several liability.

  • Debtors in insolvency for the current obligations born after the declaration of the state of emergency, but also debtors that apply a payment rescheduling according to the Fiscal Procedure Code, can also benefit from the simplified rescheduling.
  • During the rescheduling period, starting with 26 December 2020, the level of interest for each day is 0.01%.
  • For the payment rescheduling rate paid late until the next payment term in the rescheduling schedule, as well as for the differences of fiscal obligations marked and remaining unpaid after the settlement of the returns with negative amount of VAT with reimbursement option, a penalty of 5 % of the amount remaining unpaid from the staggering rate/ differences of fiscal obligations marked and remaining unpaid after the settlement of the returns with negative amount of VAT is charged.
  • The procedure for granting the payment rescheduling is approved by ANAF Order within 15 days from the entry into force of the emergency ordinance.


  • The notification of the intention to benefit from the restructuring of budgetary debts may be submitted until March 31 2021.
  • The deadline for submitting the restructuring request is extended until June 30, 2021.


  • Taxpayers liable to pay the specific tax do not owe specific tax for the 26 October-31 December 2020 period.


  • Local councils may decide until 2 December 2020 to reduce the building tax by a rate of up to 50%, for non-residential buildings, owned by individuals or legal entities, used for their own economic activity or put into use by a contract of lease, loan or other type of contract for carrying out economic activities to other natural or legal persons, in case the economic activity of the taxpayer was totally or partially interrupted.
  • Taxpayers that qualify for the reduction of building tax have the possibility to submit a request for the application of the tax reduction by December 21, 2020.

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