Romania’s government in October 2015 issued an “emergency ordinance” that allows for the “cancellation” of penalties and interest imposed for the late payment of taxes.

The Emergency Ordinance no. 44/2015 supports the general interest of supporting economic growth by helping taxpayers in distress, by providing some tax incentives to stimulate voluntary payment, by them, of the outstanding payment obligations. The legislative act provides for the cancellation of the late payment penalties and a 54.2% share of the interest related to the main payment obligations, outstanding as at 30 September 2015, inclusive, if several conditions are fulfilled cumulatively.

The current provisions include:

• the cancellation of the late payment penalties, and the 54.2% share of the interest related to the balances of payment obligations declared extra by amending statements correcting the main payment obligations with the maturity prior to 30 September 2015, inclusive, but also for the main payment obligations individualized in taxation decisions issued as a result of tax inspections underway by the entry into force, and the act stipulates numerous requirements to be met cumulatively for each of the aforementioned situations;
• the taxpayer shall file the application for the cancellation of ancillary obligations by 30 June 2016, inclusive, under penalty of preclusion.
• the taxpayer’s intention to benefit from the cancellation of the ancillary payment obligations shall be conveyed to the competent tax authority no later than the date of submission of the application for their cancellation.