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Late Payment Interest and Fiscal Procedure Amendments
Taking into consideration the effects of the current economic crisis in Romania, the Romanian Government approved, at the end of September 2010, a Government Emergency Ordinance amending the Romanian Fiscal Procedure Code concerning the level of late payment interest applicable to tax liabilities. Taxand Romania touches on such amendments below.
According to the Emergency Ordinance, starting 1 October 2010, the late payment interest on tax liabilities owed to the state budget is decreased at 0.04% per day of delay, compared to the prior value of 0.05%. Late payment penalties up to 15% of the overdue tax liabilities, depending on the delay in payment, remain unchanged.
The current financial crisis continuously affects the Romanian business environment, by impacting the economic operators' liquidity and generating major negative effects, such as financial blockages, insolvency , and bankruptcies. Under these circumstances, the amendments brought to the Romanian Fiscal Procedure Code aim to reduce the fiscal burden for taxpayers and settle the legal framework for fiscal debt with the aim of giving the economy a boost.
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