Daniel Anghel, PwC Romania: Tax administration is preparing several digitization projects to be implemented

In the context of the current crisis, measures such as the use of the Virtual Private Space for documents issuance, the filing of online statements and the electronic archiving are necessary in the relation of authorities – taxpayers, according to Daniel Anghel, Partner, Tax and Legal Services Leader at PwC Romania.

“Recently, the government adopted an emergency ordinance, not yet published, which obliges public authorities and institutions to accept documents signed by electronic signature, sent online by companies and individuals,” Anghel said. “We also know that this year the tax administration is preparing several digitization projects to be implemented. We hope that this whole process of digitization of public services will be accelerated in the next period because it is for the benefit of the authorities and the taxpayers both in terms of simplifying the interaction, as well as reducing the costs.”

The postponement of the fiscal obligations payment without the establishment of the accessories up to 30 days from the cessation of the emergency state is considered the most useful measure taken by the government in the context of the COVID-19 pandemic by 90% of the responding companies in PwC Romania’s HR Barometer study.

Regarding the impact of the measures taken by the authorities in COVID-19 pandemic context, the vast majority of the respondents appreciated other measures taken in the fiscal area as follows:

• 88% consider welcome the postponement of the payment term for the tax on buildings, land and the tax on means of conveyance (including the deadline for granting the discount) from 31 March 2020 to 30 June 2020.
• 70% think it is useful the measure that establishes the quarterly advance payments at the level resulting from the calculation of the current quarterly profit tax.

Regarding the measures proposed publicly by the business environment, the companies responded as follows:

• 70% say it would be useful to implement electronic billing and archiving.
• 64% consider the full tax deductibility for donations made for the eradication and combating Covid-19 as beneficial.
• 58% believe it’s needed the registration, residence, registration and any other certificates through the Virtual Private Space.
• 52% would like the full deductibility for the provisions for non-payment risk created as a result of the pandemic effects, as well as the adjustment of the VAT tax base for receivables not received during the period when the state of emergency is applicable and for 60 days after.
• 34% think it would be useful to implement the VAT refund with subsequent control for all taxpayers, regardless of the amount requested for reimbursement.