EUR 460 mln tax credit in Romania not settled by contributors yet

Out of the RON 18.1 billion (over EUR 3.6 bln) tax credit extended by the Romanian Government, mostly to firms, in 2020, RON 5.36 bln (EUR 1.1 bln) was already paid in the first quarter of the year (Q1).

Another RON 10.5 bln (EUR 2.1 bln) was restructured under the simplified procedure proposed by the tax collection agency ANAF. The rest of RON 2.26 bln (EUR 460 mln) was not settled yet by the taxpayers, Profit.ro reported.

The deadline for the contributors willing to adhere to the simplified restructuring procedure (which allows a preferential 3.65% annual interest rate) was extended from the end of March to the end of September - meaning that the taxpayers owing the EUR 460 mln to budget are not under imminent risk of forced execution.

The data released by ANAF reveals one of the drivers that pushed the budget revenues above the Government’s expectations in the first quarter of the year: the taxpayers, using their resources, paid their dues deferred during 2020.

The tax collection agency ANAF reported that the tax revenues increased, in the first quarter of the year, by 14% compared to the same period of 2020.

Notably, the taxpayers were allowed to defer their dues to budget, under certain conditions, starting the end of March 2020 - which hit the Q1 revenues in 2020. This is going to continue through the whole year, although with a smaller intensity - as only RON 10 bln will be paid within a 12-month period (after the date of the restructuring agreement, which was in the first quarter of the year) compared to RON 5.36 bln paid in the first quarter of the year.

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