Fiscal amnesty or how to get rid of some debts to the state budget?

On September 9, 2024, Emergency Ordinance 107/2024 came into force, through which the Romanian Government adopted certain fiscal amnesty measures (cancellation of some fiscal obligations). These fiscal measures address specific categories of taxpayers, target only certain fiscal obligations, and may only take effect if specific conditions are met and precise deadlines are adhered to.

Who does the law apply to?

As expected, regarding the beneficiaries of the fiscal amnesty, the legislator made no discrimination, including all categories of taxpayers/debtors, namely: individuals or legal entities, public or private law entities, associations and other entities without legal personality, individuals engaged in independent economic activities or exercising liberal professions, administrative-territorial units or subdivisions of the municipality of Bucharest, and public institutions.

What fiscal obligations can be subject to amnesty?

As a rule, interest, penalties, and all accessories related to primary budgetary obligations, overdue as of August 31, 2024, inclusive, may be canceled. Individual debtors may benefit, in addition to the cancellation of the obligations mentioned above, from partial cancellation of primary budgetary obligations overdue as of August 31, 2024, inclusive. Depending on the amount of the primary overdue debt as of August 31, 2024, inclusive, individuals may benefit from cancellation of 50% (for overdue debts under 5,000 lei) or 25% (for overdue debts exceeding 5,000 lei).

What conditions must be met to benefit from fiscal amnesty?

To benefit from fiscal amnesty, the following conditions must be met cumulatively:

• First, all primary budgetary obligations overdue as of August 31, 2024, inclusive, must be paid or settled through any legal means.
• Additionally, all primary budgetary obligations and their accessories with payment deadlines between September 1, 2024, and the date of submission of the request for cancellation of accessories inclusive, must be paid or settled through any legal means.
• Lastly, proof must be provided that all tax returns, according to the fiscal vector, have been submitted by the date of submission of the request for cancellation of accessories inclusive.
• For individual debtors requesting partial cancellation of primary budgetary obligations, an additional condition is required: they must prove payment of the remaining 50% or, as applicable, 75% of the primary fiscal obligation by the date of submission of the request for cancellation.

What is the deadline for submitting the request for cancellation of fiscal obligations?

To benefit from the above fiscal measures, the debtor must submit the request for cancellation by November 25, 2024, inclusive, under penalty of forfeiture.

As of the publication date of this article, no specific procedure for the cancellation of budgetary obligations has been adopted; however, the Ministry of Finance has put forward a draft Ordinance for public debate, which is expected to be adopted as soon as possible.