Romania introduces penalties for failure to declare taxes

Individuals and companies that fail to declare the taxes they owe to the state will have to pay a “penalty for failure to declare” of 0.06% per day, if the amounts exceed RON 50 (EUR 11). The penalty can double if the debts result from tax evasion. Debtors will have to pay the debt starting with the day following the due date and until the date of settlement for the amount owed or for tax liabilities identified by tax inspectors through inspection, according to the new Fiscal Code draft approved by the Government, reports local Ziarul Financiar. The individuals and companies that will pay these penalties will not be exempt from paying interest on the debt. Fiscal authorities will not impose this penalty if the owed amount is lower than RON 50 (EUR 11). The same sanction applies for companies and individuals who under declare their taxes. The business environment has contested this measure, as under declaration can be caused by errors and not by bad intentions. Romanian Government approves Fiscal Code draft law. Social contributions tax reduction in Romania delayed by a year. Irina Popescu, irina.popescu@romania-insider.com