Romania’s Government plans to erase the penalties for local companies that are late in paying their taxes to the state budget if they meet several conditions.

The companies that have budgetary debt outstanding on September 30, 2015, will have to pay their overdue taxes by March 31, 2016. They will also have to pay the interest on the overdue sums by June 30 next year. If they do this, they won’t have to pay any other penalties for these sums, according to a Government decision draft cited by local Profit.ro.

The Government thus plans to increase budget collection, stimulate companies to voluntarily pay their debts and reduce budgetary arrears. This facility will not be available for insolvent companies.

For the outstanding debt older than two years, penalties amount to 15% per year of the main amount. Starting August 2013, penalties have been reduced to 7.25% per year.

editor@romania-insider.com