Legislative News in October 2011

LEGISLATIVE NEWS IN OCTOBER 2011

LEGISLATIVE NEWS IN OCTOBER 2011

Important legal regulations for the business environment in Romania were published in the Official Gazette, Part I during the month of October 2011 such as:

I. Order no. 2604/2011 dated 03/10/2011 regarding application of art.XI of Government Ordinance no. 30/2011 amending and supplementing Law no. 571/2003 regarding the Fiscal Code and the regulations of fiscal measures, issued by the Ministry of Finance.

The Act came into force on 06 October 2011.

For tax liabilities which are accessories to main tax liabilities outstanding on August 31, 2011 the following facilities are granted:

a) Cancellation of penalties for delay and cancellation of a share of 50% of the penalties for these tax liabilities, if principal and interest are settled by payment or compensation until 31 December 2011;

b) 50% reduction of penalties for delay, and a 50% reduction rate of 50% of the penalties for these tax liabilities, if principal and interest on their obligations are settled by payment or compensation until June 30, 2012.

The facilities mentioned above shall not apply to tax liabilities extinguished by seizure or cashed in from selling of seized goods.

Until October 15, 2011, the competent auhtorities identify taxpayers who, according to tax records, have main outstanding tax liabilities recorded on August 31, 2011 and notify taxpayers of the possibility of granting facility referred to above. Taxpayers which were not notified by the competent authorities may address to clarify the tax situation.

II. Order no. 2677/2011 of 10.19.2011 amending the Annex to the Order of the Minister of Public Finance no. 1.853/2011 Procedure for application of provisions of Emergency Ordinance no. 29/2011 to regulate the granting of scheduled payments issued by the Ministry of Finance.

The Act came into force on 31 October 2011.

For obligations administered by the National Agency for Tax Administration, the tax authority may provide the following facilities:

a) Payment scheduling of tax liabilities, except for interest on late payment of tax liabilities in installments, upon request of the taxpayer;

b) a deferred payment, in accordance with the law, of penalties for late payment of tax liabilities to pay installments, for cancellation, up to the final payment within the given payment scheduling.

Rescheduling of tax obligations by taxpayers is required upon application to the Public Finance or communicated by mail with return receipt.

The taxpayer's request is solved within maximum 60 days after registration, by the tax authority, by issuing a decision on rescheduling the payment of tax liabilities and on deferring late payment penalties or a decision to reject the application for scheduled payments of tax obligations.