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Tax incentives relative to penalties for late payment and 54.2% of the penalty interest

Monitorul Oficial al Romaniei, Part I, No 785 of 21 October 2015 has published Government Emergency Ordinance No 44/2015 on the granting of tax incentives (the “ Ordinance”) . According to the provisions of this Ordinance, the penalties for late payment and 54.2% of the penalty interest applied to the payment obligations referred to herein below shall be cancelled:

– the principal amounts due to the consolidated general budget, which have been outstanding as of 30 September 2015, included, and are administered by the National Tax Administration Agency (“ANAF”);

– the amounts additionally declared by taxpayers in amended tax returns whereby the principal payment obligations, administered by ANAF, have been corrected in consideration of the amounts overdue prior to 30 September 2015, included;

– the principal duties, administered by ANAF, which should have been paid until 30 September 2015, included, and have been extinguished by this date;

– the principal payment obligations, administered by ANAF, due until 30 September 2015, included, and individualised under tax decisions issued in consequence of an inspection that has been in progress at the date on which the Ordinance has become effective.

The Ordinance specifies the conditions which should be cumulatively met in each of the aforementioned cases so that the above-referenced incentives may be granted. Apart from meeting the respective conditions, taxpayers shall file an application for the annulment of incidental payments.Tax incentive is also applicable to 77.1% of the penalties for late payment which should have been paid by taxpayers until the entry into force of Government Emergency Ordinance 39/2010.In respect to the payments due to local budgets, the provisions of this Ordinance shall also apply only if the local council has determined so under its resolution. In such case, the tax incentive shall consist of the cancellation of 73.3% of the penalty for late payment applied to the outstanding amounts due to the local budgets.The Ordinance also includes provisions specific for the taxpayers that, on 30 September 2015, benefit from tax-deferred arrangements in compliance with Government Emergency Ordinance 29/2011.

The provisions of Government Emergency Ordinance 44/2015 have entered into full force and effect on 21 October 2015.

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