Newsletter March 2021

The Ministry of Finance extends a series of tax measures advantageous for taxpayers

The Government of Romania adopted in the meeting of March 25, 2021, the project of the Ministry of Finance, which aims at a series of measures meant to support the business environment, such as: exemption from paying specific tax and regulations in the field of fiscal procedures. Exemption from the payment of the tax specific to some activities due by the economic operators carrying out activity in the HORECA field, for another period of 90 days calculated starting with April 1, 2021.

Regulations in the field of fiscal procedures:

  • Restructuring of budgetary obligations: the measures adopted provide for the extension of the deadline for submitting the restructuring application from 30 June 2021 to 31 January 2022.
  • Reimbursement of VAT with subsequent control: the term for which taxpayers can benefit from the reimbursement of value added tax with the subsequent performance of the tax inspection is extended from 31 March 2021 to 31 January 2022.
  • Cancellation of ancillary obligations: the application of these tax measures continues by extending the deadline for submitting the application for cancellation from 31 March 2021 to 31 January 2022. Taxpayers can benefit from the deletion of tax accessories (such as interest and penalties), provided that the main debts are paid and that the other criteria mentioned in the legislation are met.
  • Scheduled payment, in simplified form, of the budgetary obligations due after the date of declaration of the state of emergency, administered by the central fiscal body: the deadline for granting this facility is extended from March 31, 2021 to September 30, 2021. Taxpayers can benefit from budgetary obligations due after the date of declaration of the state of emergency, administered by the central fiscal body, in simplified access conditions and in an accelerated procedure.

NBR: Inflation Report – march 2021

According to the march edition of the Inflation Report published by the the National Bank of Romania, over the last three months of 2020, the annual CPI inflation rate remained on a downward trend, falling deeper into the lower half of the variation band of the target to 2.06 percent in December 2020 (from 2.45 percent in September).

The disinflationary trend owed during this period to bumper fruit and vegetable crops in the EU and to favourable base effects associated with the strong rise in the prices of some processed food items in the year before. The latter factor was decisive for the path of the adjusted CORE2 inflation, which, after a period of stability, went down to 3.3 percent in December 2020. At end-2020, annual inflation rates for both the CPI and the adjusted CORE2 reached the forecasts in the previous Inflation Report.

At the same time, in Q4, the average annual HICP inflation rate fell to 2.3 percent in December (from 2.8 percent at end-Q3), yet the differential versus the EU average declined only marginally, thus remaining further elevated (1.6 percentage points). The latest NIS data indicated a jump in the annual CPI inflation rate in early 2021, to 3.0 percent for January 2021 and 3.2 percent for February, amid the hike in electricity prices – in the context of the structural changes triggered by this market liberalisation – and the rising fuel prices following the faster dynamics of Brent oil prices.

In the latter half of 2020, the annual growth rate of unit labour costs slowed down, remaining however robust (approximately 9 percent in 2020 H2 from roughly 12 percent in Q2). This high value shows workforce retention, underpinned particularly by labour market support measures. The indicator adjusted for the impact of firms’ recourse to government support measures (furlough schemes, the reactivation of the employment contracts suspended during the state of emergency) recorded lower dynamics (of about 7 percent).

Launch of the financial education platform www.edu-fin.ro

The Ministry of Education, the National Bank of Romania, the Ministry of Finance, the Financial Supervisory Authority and the Romanian Association of Banks announce the launch of the financial education platform www.edu-fin.ro. The five partner institutions invite the entities involved in projects in the field of financial education to register, until the end of April 2021, their own financial education programs, developed starting with 2018, on the platform www.edu-fin.ro, in the White Paper section.

Through the www.edu-fin.ro platform, a database is created, which includes all the entities that want to promote their financial education projects, carried out in their own name at national level. Enrollment in this database is easy, allowing a better interconnection of actors involved in financial education activities, providing an overview of education in this field in Romania.

For the general public, the site is an interactive platform that provides practical advice for all those who want to develop their knowledge, attitude and financial behavior.