Tax facilities granted by Emergency Ordinance no. 107/2024

October 9, 2024
Author: Florian Robescu

As stipulated by Emergency Ordinance no. 107/2024 (subsequently amended by Emergency Ordinance 112/2024) and the Procedure for the Cancellation of Tax Obligations approved by OMF no. 5521/2024, in the upcoming period, the targeted legal and natural persons can benefit from tax amnesty regarding budgetary obligations administered by the central tax authority, including customs authorities and, where applicable, by territorial administrative units if decided by a local council resolution.

What are the granted tax facilities?

  • Cancellation of interest, penalties, and all accessories related to primary budget obligations that are overdue as of August 31, 2024, inclusive;
  • Cancellation of interest, penalties, and all accessories related to differences in primary budget obligations declared additionally by debtors through a rectifying declaration that corrects the primary budget obligations with due dates prior to August 31, 2024, inclusive. This facility is also granted in case of correcting errors in VAT returns made according to the applicable legal regulations;
  • Cancellation of interest, penalties, and all accessories related to primary budget obligations with due dates prior to August 31, 2024, inclusive, and settled by this date;
  • Cancellation of interest, penalties, and all accessories related to primary budget obligations with due dates prior to August 31, 2024, inclusive, individualized in tax assessment decisions issued as a result of an ongoing tax audit at the time of the entry into force of Emergency Ordinance no. 107/2024, specifically September 6, 2024 (even if the assessment decision is issued later);
  • Cancellation of interest, penalties, and all accessories related to primary budget obligations established through ex officio income tax assessment decisions for the years 2019 and 2020;
  • Cancellation of interest, penalties, and all accessories related to primary budget obligations with due dates prior to August 31, 2024, inclusive, for which the payment deferral granted according to Law no. 207/2015 on the Tax Procedure Code, with subsequent amendments and completions, was completed by the date of submission of the cancellation request, but no later than November 25, 2024;
  • Cancellation of a percentage of 25% or 50% of the outstanding primary budget obligations as of August 31, 2024, inclusive, depending on their amount as stated in the tax attestation certificate, for natural persons, as follows:
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    1. If the amount of primary budget obligations is less than 5,000 lei, inclusive – natural persons may benefit from the cancellation of 50% of their outstanding primary budget obligations, provided that they are settled by 50% by the date of submission of the cancellation request, but no later than November 25, 2024;
    2. If the amount of primary budget obligations exceeds 5,000 lei – natural persons may benefit from the cancellation of 25% of their outstanding primary budget obligations, provided that they are settled by 75% by the date of submission of the cancellation request, but no later than November 25, 2024. Natural persons will benefit from the cancellation of interest, penalties, and all accessories related to outstanding primary budget obligations as of August 31, 2024, inclusive, if the conditions mentioned in point (a) or (b) are met, as applicable.

    The measures can be applied by:

    What is Meant by Outstanding Budgetary Obligations?

    According to Article III of Emergency Ordinance No. 107/2024, the following are NOT considered outstanding payment obligations as of August 31, 2024, inclusive:

    However, obligations mentioned in letters a) and b) are considered outstanding as of August 31, 2024, inclusive, if subsequently, but no later than November 25, 2024, the payment facility loses its validity or, as the case may be, the suspension of the execution of the administrative fiscal act ceases. For the payment obligations mentioned in letter b), debtors can waive the effects of the suspension of the administrative fiscal act to benefit from the cancellation of interests, penalties, and all accessories. In this case, debtors must submit a request to waive the effects of the suspension of the administrative fiscal act by the date of submission of the cancellation request, inclusive—it is important to note that the waiver of the effects of the suspension is carried out in court.

    Explicitly, the Provisions of Emergency Ordinance No. 107/2024 do not apply to the following categories of budgetary obligations:

    What conditions must be met to benefit from tax facilities?

    First, all outstanding main budgetary obligations as of August 31, 2024, inclusive, administered by the central tax authority, must be settled by any means provided for in Article 22 of Law No. 207/2015 (Tax claims must be settled through payment, offsetting, enforcement, exemption, cancellation, prescription, payment in kind, and other means explicitly provided by law), by the date of submission of the request for cancellation of accessories, inclusive (but no later than November 25, 2024);

    Furthermore, all main budgetary obligations and accessories administered by the central tax authority with payment deadlines between September 1, 2024, and the date of submission of the cancellation request, inclusive, but no later than November 25, 2024, must also be settled by any means provided for in Article 22 of Law No. 207/2015 (Tax claims are settled through payment, offsetting, enforcement, exemption, cancellation, prescription, payment in kind, and other means explicitly provided by law);

    Another essential condition is that the applicant must have submitted all tax declarations, according to the tax vector, by the date of submission of the cancellation request, inclusive. This condition is considered met even in cases where tax declarations were not submitted for periods, as long as the tax obligations were established by the central tax authority through a decision.

    Finally, the applicant submits the request for the cancellation of accessories EXCLUSIVELY after properly fulfilling the conditions stipulated by Emergency Ordinance No. 107/2024, by November 25, 2024, inclusive; otherwise, they can no longer benefit from the facility. For the facility regarding the cancellation of interests, penalties, and all accessories related to differences in main budgetary obligations declared additionally by debtors through a rectifying declaration that corrects main budgetary obligations with deadlines prior to August 31, 2024, inclusive, in addition to the conditions from points 2-4, the following conditions must also be met:

    What are the conditions to benefit from facilities in the case of tax assessment decisions issued as a result of a tax audit in progress on the date of entry into force of GEO 107/2024, namely September 6, 2024?

    All differences in the main budgetary obligations individualized in the tax assessment decision must be settled by any means provided in Article 22 of Law No. 207/2015, with subsequent amendments and completions, by the payment deadline specified in Article 156 paragraph (1) of the same law, which stipulates the payment term of obligations based on the date of communication of the decision:

    Subsequently, the request for the cancellation of accessories must be submitted within 90 days from the communication of the tax assessment decision, under penalty of expiration (even if the tax assessment decision was communicated after November 25, 2024).

    What are the conditions to benefit from the facility regarding the cancellation of interests, penalties, and all accessories related to main budgetary obligations established by ex officio income assessments for individuals for the years 2019 and 2020?

    Firstly, all main budgetary obligations individualized in the ex officio tax assessment decision must be settled by any means provided in Article 22 of Law No. 207/2015, with subsequent amendments and completions, by the payment deadline specified in Article 156 paragraph (1) of the same law;

    After fulfilling the above requirements, the request for the cancellation of accessories must be submitted within 90 days from the communication of the ex officio tax assessment decision, under penalty of expiration.

    Can I request tax facilities if I benefit from a payment installment plan?

    Yes, tax facilities apply also to those who obtain an installment payment plan during the period between the entry into force of this emergency ordinance and November 25, 2024. Debtors can benefit from the cancellation of interests, penalties, and all accessories under the conditions provided in Articles III-V and XVI.

    Specifically, debtors who, on the date of entry into force of this emergency ordinance, benefit from an installment payment plan for tax obligations according to the provisions of Law No. 207/2015, with subsequent amendments and completions, as well as those who obtain the installment payment plan during the period between the entry into force of this emergency ordinance and November 25, 2024, inclusive, can benefit, upon notification, from the postponement of interests, penalties, and all accessories remaining from the granted installment plan. The cancellation of interests, penalties, and all accessories is granted if the cancellation request is submitted by November 25, 2024, inclusive, and the installment payment plan is completed by the date of submission of the cancellation request, inclusive, but no later than November 25, 2024.

    If the debtors do not comply with the aforementioned conditions, they can request a modification of the installment payment plan, provided that within 30 days from the date of communication of the decision to lose the validity of the payment postponement, they submit a request to that effect. The request submitted under this paragraph is not taken into account in establishing the number of requests that can be submitted during the application of the installment payment plan.

    If debtors do not pay the budgetary obligations included in the decision to lose the validity of the payment postponement or do not submit the request to modify the installment payment plan within the specified time, the tax authority will communicate a payment notice to them, in which case these budgetary obligations must be paid within 30 days from the date of communication of the payment notice.

    It should also be noted that if the ongoing installment payment plan includes only accessory payment obligations, debtors can benefit from the cancellation of the remaining accessories to be paid from the granted payment facilities without having to pay them, following which, based on the cancellation request, the tax authority will issue the decision to cancel the accessories, as well as the decision to finalize the installment payment plan.

    What steps need to be taken?

    I. The applicant submits the notification regarding the intention to benefit from the cancellation of certain budgetary obligations

    Debtors who intend to benefit from the cancellation of budgetary obligations can notify the tax authority of their intention, no later than the date of submission of the request for the cancellation of accessories and no later than November 25, 2024, under penalty of expiration. The notification regarding the intention to benefit from the cancellation of certain budgetary obligations can be submitted:

    The smart PDF notification can be downloaded here.

    II. Issuance of the Fiscal Attestation Certificate

    After receiving the notification, the tax authority checks whether the declarative obligations according to fiscal law are fulfilled. Otherwise, the applicant is warned to submit the unidentified declarations. If these obligations are not fulfilled, the notification will be rejected because the Fiscal Attestation Certificate cannot be issued in the absence of data. Subsequently, the tax authority will issue the fiscal attestation certificate ex officio, which will be communicated to the debtor within a maximum of 5 working days from the date of submission of the notification. In the case of discrepancies between the tax records and those from the applicant's records, the data will be reconciled, and a Reconciliation Report and an updated Fiscal Attestation Certificate will be issued.

    III. Issuance of the Decision to Postpone Payment of Budgetary Obligations:

    The decision is issued based on the data from the Fiscal Attestation Certificate. For these obligations, forced execution is suspended, no settlements will be made against them, and they will no longer be considered overdue budgetary obligations in the case of issuing a new Fiscal Attestation Certificate.

    IV. Submission of the request for cancellation of certain budgetary obligations

    After fulfilling the previously mentioned payment obligations, the debtor submits, no later than November 25, 2024, the request for cancellation of certain budgetary obligations. This request can be submitted:

    The intelligent PDF request can be downloaded here.

    The request for cancellation of certain budgetary obligations can be withdrawn by the debtor at any time by submitting a request to the tax authority. By withdrawing the request, the debtor maintains the right to submit a new request for cancellation of certain budgetary obligations, respecting the conditions provided for this purpose by GEO 107/2024. To benefit from the cancellation of certain budgetary obligations, the debtor can submit either a single request for all facilities or separate requests for each of them, according to the model of the Request.

    What bonuses are granted?

    Taxpayers liable for profit tax and taxpayers liable for microenterprise income tax benefit from a 3% bonus on the annual profit tax and the microenterprise income tax for the fiscal year 2024/the modified fiscal year starting in 2024, as applicable. In the case of the fiscal group, the bonus applies to the annual profit tax declared by the responsible legal entity. The bonus is granted ex officio to the taxpayer if the following conditions are met:

    For more details, we suggest reviewing the bibliographic material based on which this article was drafted:

    Guide published by ANAF
    OUG 107/2024
    OMFP 5521/2024

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