Tax amnesty 2024

By GEO 107/2024 a new tax amnesty has been introduced, which offers certain facilities for individuals and legal entities with debts to the state. The tax amnesty is an exceptional measure whereby the state waives part of taxpayers’ tax debts under certain conditions. It may involve:

• Total or partial write-off of the main tax debt: This means that taxpayers can be relieved from paying all or part of the amount owed to the state.
• Cancellation of interest and penalties: In many cases, the tax amnesty may also include the cancellation of interest and penalties accumulated over time.

What does it mean?

By GEO 107/2024 a new tax amnesty has been introduced, which offers certain facilities for individuals and legal entities with debts to the state. The tax amnesty is an exceptional measure whereby the state waives part of taxpayers’ tax debts under certain conditions. It may involve:

• Total or partial write-off of the main tax debt: This means that taxpayers can be relieved from paying all or part of the amount owed to the state.
• Cancellation of interest and penalties: In many cases, the tax amnesty may also include the cancellation of interest and penalties accumulated over time.

2. How does it work?

If applicable, in accordance with Order 5521/2024 for the approval of the Procedure for the Cancellation of certain budgetary obligations, applicants must submit a notification to ANAF, until November 25, 2024 inclusive. This notification can be submitted :Tax amnesty 2024

• Physically , at the ANAF registry – for individuals without SPV
• By mail with NOTICE OF RECEIPT – for individuals without SPV
• Via SPV.

Tax authorities will issue the decision and communicate it to taxpayers within 5 working days.

3. Tax amnesty for individuals :Tax amnesty 2024

If you have outstanding debts – main obligations as of 31.08.2024 equal to or less than 5000 lei, of which you have paid half by the date of application, but not later than 25.11.2024, you can benefit from:Tax amnesty 2024

• Cancel 50% of the principal outstanding at 31.08.2024
• Cancellation of all related accessorily, interest and penalties for principal budgetary obligations outstanding on August 31, 2024.

If you have debts – principal outstanding on 31.08.2024 amounting to more than 5000 lei of which you have paid 75% by the date of application, but no later than 25.11.2024, you can benefit from:

• Cancellation of 25% of the principal outstanding at 31.08.2024
• Cancellation of all related accessorily, interest and penalties for principal budgetary obligations outstanding on August 31, 2024.

To be able to benefit from the above, it is essential that the individual has all the declarations filed up to date and all current obligations paid.

• Tax relief for legal entities:

Legal entities that owe both principal and accessory debts, interest and penalties may benefit from the write-off of accessory debts, interest and penalties related to principal debts outstanding on 31.08.2024 if :

• Pay all outstanding principal obligations on 08/31/2024;
• Pay current obligations;
• File all tax returns;
• I apply for annulment by 25.11.2024.

The same provisions apply to the amounts resulting from rectifying statements submitted following the discovery of errors.

Legal entities that are under tax control at the date of entry into force of the Ordinance on Tax Amnesty may benefit from tax amnesty for interest, penalties and accessories established for additional obligations communicated by tax assessment decision.

The condition is to submit the request for annulment within 90 days from the date of the decision, regardless of whether the date is after the deadline of 25.11.2024.

Tax Amnesty 2024: Here’s What You Should Know

What Is Tax Amnesty 2024?

By GEO 107/2024, a new tax amnesty has been introduced, which offers facilities for individuals and legal entities with debts to the state. The tax amnesty is an exceptional measure whereby the state waives part of the taxpayers’ tax debts, subject to certain conditions. This can include:

• Total or partial write-off of the main tax debt: taxpayers can be exempted from paying all or part of the amount owed to the state.
• Cancel interest and penalties: accrued interest and penalties can be written off.

How does the tax amnesty work?

According to Order 5521/2024 on the approval of the procedure for the cancellation of certain budgetary obligations, taxpayers must file a notification by November 25, 2024, using one of the following methods:

• Physical deposit: at the ANAF registry, for individuals without SPV account.
• By post with confirmation of receipt: for individuals without a SPV account.
• Via Virtual Private Space (VPS): for users who have access to this service.

After submitting the request, the tax authorities will issue a decision within 5 working days and communicate it to the taxpayer.

Tax Amnesty for Individuals

Eligibility Conditions:

1. Debts up to 5.000 lei:
   • You have principal obligations outstanding on August 31, 2024, in an amount equal to or less than 5,000 lei.
   • You have paid at least 50% of these debts by November 25, 2024.

Benefits:

1. Cancel 50% of the outstanding principal.
2. Annulment of all interest, penalties and related charges.
3. Debts over 5.000 lei:
   • You have principal obligations outstanding on August 31, 2024, in excess of 5,000 lei.
   • You have paid at least 75% of these debts by November 25, 2024.

Benefits:

2. Cancel 25% of the principal outstanding.
3. Annulment of all interest, penalties and related charges.

Other Conditions:

To benefit from the amnesty, individuals must:

• Have all tax returns filed up to date.
• Pay current obligations.

Tax Amnesty for Legal Entities

Eligibility Conditions:

Legal entities may benefit from the write-off of the outstanding principal, interest and penalties related to the principal outstanding on August 31, 2024 if:

1. Pay all outstanding principal obligations on August 31, 2024.
2. Pay current obligations.
3. File all tax returns up to date.
4. I submit my request for cancellation by November 25, 2024.

Amounts Resulting from Rectifying Declarations:

The same applies to amounts due resulting from amending statements submitted to correct errors.

Taxpayers Under Tax Control:

Legal persons under tax control may benefit from amnesty for interest, penalties and accessory charges related to additional obligations established by tax assessment decision, if:

• File the request for annulment within 90 days of the date of the decision, even if the deadline is later than November 25, 2024.

Conclusion: the Tax Amnesty 2024 is an opportunity for taxpayers to reduce their tax burden, complying with the conditions imposed by GEO 107/2024. Both individuals and legal entities can benefit from significant tax breaks, provided that they submit their applications within the prescribed deadline.vvv