Emergency Ordinance no. 107/2024 introduces the following fiscal measures for all categories of taxpayers:

• Fiscal amnesty for interest, penalties and all accessories related to the main budgetary obligations outstanding on August 31, 2024, under the conditions established by the GEO;
• For natural persons, a percentage of 50% or 25% of the main budgetary obligations and related accessories, outstanding on August 31, 2024, is cancelled;
• Good-paying taxpayers are granted a bonus of 3% of the annual profit tax and/or of the income tax of micro-enterprises for the fiscal year 2024;
• Local public authorities benefit from support for investments, by facilitating access to financing through European funds or credits from the treasury;
• In order to effectively manage the public expenditure system, the Government of Romania will reduce or postpone non-essential expenditure.

The categories of taxpayers that benefit from the cancellation of ancillary budget obligations related to the main budget obligations outstanding on August 31, 2024 are the following:

• natural persons, legal persons, under public or private law, associations and other entities without legal personality, authorized natural persons or those exercising liberal professions, administrative-territorial units or administrative-territorial subdivisions of the municipality of Bucharest or public institutions.

The conditions that individuals/legal entities should meet in order to benefit from the tax amnesty are the following:

• the main budget obligations outstanding on August 31, 2024 inclusive are paid until the application for cancellation of the accessories is submitted inclusively, but no later than November 25, 2024;
• payment of budgetary obligations with payment terms between September 1, 2024 and the date of submission of the application for the cancellation of accessories inclusive, but no later than November 25, 2024;
• registration with the tax authorities until the date of submission of the application for cancellation of the accessories of all tax declarations, according to the tax vector;
• the request to cancel the accessories can be submitted by taxpayers after meeting the conditions mentioned above, but no later than November 25, 2024, under penalty of forfeiture.

Interest, penalties and all ancillary fiscal obligations related to the main budget obligations with maturities up to and including August 31, 2024 and paid up to August 31, 2024 are cancelled if the same conditions, previously stated, are met.

In the event of extinguishing the ancillary fiscal obligations related to the main budgetary obligations with maturities prior to August 31, 2024 after the entry into force of GEO no. 107/2024 (September 6, 2024), they are cancelled and subject to restitution.

The additional budgetary obligations related to the budgetary obligations additionally declared by the debtors through a rectification statement are cancelled

The interests, penalties and accessories related to the differences in main budgetary obligations additionally declared by the debtors through a rectification statement that corrects the main budgetary obligations with payment terms prior to August 31, 2024 inclusive, managed by the fiscal body, will be cancelled if the following are cumulatively met conditions:

• the submission of the rectification declaration is carried out in the period between September 1, 2024 and the date of submission of the request for the cancellation of the accessories inclusive, but no later than November 25, 2024;
• all the main budgetary obligations specified in the rectification statement must be paid by any method provided by law, until the time of submitting the application for the cancellation of the accessories;
• the main and ancillary budgetary obligations managed by the fiscal authority, with payment terms between September 1, 2024 and the date of submission of the request for cancellation of the accessories must be paid in full by the date of submission of the request for cancellation of the accessories;
• according to the tax vector, the submission of all tax returns must be completed by the date of submission of the application for cancellation of the accessories inclusive, but no later than November 25, 2024;
• requests to cancel accessories must be submitted by November 25, 2024 inclusive, under penalty of forfeiture.

The ancillary budget obligations related to the main budget obligations with maturities prior to August 31, 2024 and individualized in taxation decisions are cancelled.

The interests, penalties and ancillary budget obligations related to the main budget obligations managed by the central fiscal body with payment terms prior to August 31, 2024 inclusive and individualized in taxation decisions issued following a fiscal control in progress at the date of entry into force of GEO no. 107/2024 will be cancelled if the following conditions are cumulatively met:

• the differences in the main budgetary obligations individualized by the tax decision must be paid in full by any method provided by law until the payment term provided for in art. 156 para. (1) from the Fiscal Procedure Code;
• submission of the request to cancel the accessories within 90 days from the date of communication of the decision to impose, under the penalty of forfeiture.

The cancellation of accessory budgetary obligations applies under the previously mentioned conditions and for:

• the differences in main budgetary obligations for the fiscal periods up to and including August 31, 2024, established by the competent fiscal authority through a tax decision issued and communicated before the effective date of GEO no. 107/2024, as a result of a fiscal control;
• the main budgetary obligations for the fiscal periods up to August 31, 2024, either established by a tax decision issued ex officio by the tax authority, or by a tax declaration submitted late by the taxpayer, including for the period between September 1, 2024 and the date of the application cancellation.
• other payment obligations specified in executory titles existing in the authority’s registers on August 31, 2024, as well as the main budgetary obligations established by other entities other than the tax authorities, related to the period between September 1 and the date of submission of the cancellation request.

In addition, taxpayers who are to be subject to a tax inspection can submit rectification tax returns within the first 20 days from the entry into force of GEO no. 107/2024, because by derogation from the provisions of the Fiscal Procedure Code, they will be taken into account by the fiscal authority. Also, within 20 days from the entry into force of GEO no. 107/2024, debtors will be notified by the tax authorities regarding the existence of an ongoing documentary verification.

Cancellation of tax obligations for individuals

Natural persons, including those who are authorized natural persons or who practice liberal professions, respectively who have outstanding budgetary obligations until August 31, 2024, can benefit from the cancellation of some outstanding obligations, as follows:

• for natural persons who have outstanding main budgetary obligations of up to 5,000 lei: if 50% of the outstanding obligations on August 31, 2024 are paid by the date of submission of the cancellation request, but no later than November 25, 2024, then 50% of the obligations main tax and all related accessories will be cancelled.
• for natural persons who have outstanding main budgetary obligations exceeding 5,000 lei: if 75% of the outstanding obligations on August 31, 2024 are paid by the date of submission of the cancellation request, but no later than November 25, 2024, then 25% of the fiscal obligations principal and all related accessories will be cancelled.

In the situation where natural persons have sent notifications to benefit from the amnesty, the central fiscal authority issues a decision postponing the payment of a percentage of 50%, respectively 25%, of the outstanding main budget obligations on August 31, 2024 inclusive. Also, in the situation where natural persons have paid, after the entry into force of GEO no. 107/2024, a percentage of 50% or 25%, of the outstanding budget obligations until August 31, 2024 inclusive, as well as interest, penalties and all accessories that can be cancelled, they will be reimbursed.

The 3% bonuses for good-paying taxpayers

Rebates of 3% of annual profit tax and microenterprise income tax are granted for fiscal year 2024 as well as for the amended fiscal year beginning in 2024.

Taxpayers can benefit from this bonus if they meet the following conditions:

• according to the fiscal vector, the taxpayer submitted all declarations;
• the annual profit tax, as well as the tax on the incomes of micro-enterprises, related to the year 2024, as well as to the modified fiscal year starting in the year 2024 are extinguished in full and within the terms provided by law;
• taxpayers do not register other outstanding fiscal or budgetary obligations within the legal deadlines for submitting declarations declaring the annual profit tax related to the year 2024, as well as the amended fiscal year starting in 2024, respectively declaring the tax on the income of micro-enterprises related to the quarter IV of fiscal year 2024.

It is important to note that this bonus also applies if at the end of fiscal year 2024, as well as the modified fiscal year that begins in 2024, taxpayers owe profit tax at the level of the minimum turnover tax, according to art. 181 of Law no. 227/2015. The amounts related to the bonus will not be returned, but will be used to offset the taxpayers’ tax obligations.

ATTENTION: The amnesty does NOT apply to fiscal or budgetary obligations that are subject to criminal processes, stability obligations through final criminal judgments, or sums representing damages. In the cancellation request submitted, taxpayers must declare on their own responsibility that they are not in any of the situations presented above.