The opportunity to optimise Romanian tax liabilities

We remind you that a Tax Amnesty is still in place and you can benefit of it by 31 January 2022.

Conditions to be fulfilled at the date of submitting the annulment request:

• all outstanding tax liabilities are settled by the date of filling the request
• any outstanding tax returns should be submitted with the tax authorities by the date of the request
• the annulment request should be submitted by 31 January 2022.

The Tax Amnesty is applicable to accessories related to tax liabilities due prior to 31 March 2020, as:

• declared and not paid or paid with delay, including related accessories
• resulting further to submitting rectifying tax returns
• per the tax assessment decisions issued either during tax audits ongoing as of 29 March 2021 or initiated after this date, but no later than 31 January 2022, regardless when the tax assessment decision was communicated, provided that the request for annulment is submitted no later than 90 days from the communication of the assessment decision.

What to do next:

• carefully review your taxpayer file in order to determine if there are any outstanding amounts relating to periods prior to 31 March 2020 that should be paid or subject to annulment
• where mismatches between tax reporting and internal evidences are identified, analyse the option to rectify the relevant tax returns as compared with the benefit derived by such a process
• prepare and submit relevant rectifying tax returns
• prepare and submit annulment request in due time.

Carefully consider:

• the extension of the statute of limitation period, in case of submitting rectifying returns
• the right of the tax authorities to audit the periods that were already subject to a tax audit
• misleading evidences that could exist in the taxpayer’s file further to wrong evidence conducted by the tax authorities, generating additional tax liabilities and the impossibility in applying the amnesty provisions.