The exemption from the payment of the specific tax will be extended until the end of 2020, and local authorities will have the possibility until December 1 to grant exemptions for building tax and public domain occupancy fees for the current year.
Previously, the Government had established the exemption from the specific tax for the HoReCa industry in the 2020 fiscal year for a period of 90 days, complementary to the period in which it was affected by restrictions.
The Ministry of Public Finance will promote an emergency ordinance in the Government through which the exemption from the specific tax, provided for the state of emergency, will be extended until December 31, announced the relevant minister, Florin Cîțu.
According to the draft emergency ordinance, which is still in progress and expected to be approved by the Executive next week, the possibility for local authorities to adopt decisions to reduce building taxes and fees by 50% of the 2020 tax will also be extended until December 1.
At the same time, the targeted taxpayers will be able to submit requests for approval of the reduction until December 15. On the other hand, a bill advanced in Parliament proposes that companies and employees in the HoReCa industry should have a tax exemption for the fiscal years 2020, 2021, and 2022.
Frequently Asked Questions
Who is eligible for the specific tax exemption?The exemption primarily targets the HoReCa industry (hotels, restaurants, and cafes) as a support measure for businesses affected by pandemic restrictions.
Until when has the tax exemption been extended?The specific tax exemption has been extended until December 31, 2020, according to the Ministry of Finance.
Can local taxes be reduced as well?Yes, local authorities can decide to reduce building taxes by up to 50% for the year 2020, with a decision deadline set for December 1.