In order to be covered by this penalty amnesty a statement of liabilities and the penalties calculated and not paid by 31 December 1995 must be submitted to the local tax office before 31 March 1996. Payment of the penalties will be delayed until 31 December 1997. If the tax liability is paid by 31 December 1996, the penalties will be forgiven completely. If the tax liability is paid by 31 December 1997, the penalties will be reduced to 50% of the total penalties.
We are seeking clarification regarding the application of the ordinance from the tax authorities and should be in a position to further comment on the procedures in the next few days. We understand that the amnesty covers all taxes and liabilities, including: profit tax, VAT, dividend tax, local taxes, salary tax (expatriate liabilities), withholding taxes, social security contributions, contributions to various special funds (unemployment, supplementary pension, for the modernization of the customs check points, for the modernization of the public roads).
This would appear to be an excellent opportunity to "clear the slate" and should be given careful and thoughtful consideration. As the window of opportunity is approaching rapidly, Price Waterhouse would be available to assist in the calculation of the liabilities and coresponding penalties due for the period ended 31 December 1995 to ensure the statement is submitted on a timely basis.
For detailed information please contact:
Ron Barden or Anca Troaca-Dragoman Price Waterhouse Romania Strada Vasile Conta nr 3-5 Scara C Etaj 3 Apt 72 Bucuresti 2 Romania Telephone: 40-1-311-2455 Fax: 40-1-613-4174
DISCLAIMER
The above information represents a brief summary of the legislation mentioned therein and is not intended to be advice on any particular matter. Price Waterhouse expressly disclaims any liability towards any person in respect of any action or omission in reliance of the contents of this publication.
