Fiscal Peace is being reviewed, 5% tax for businesses that will re-evaluate 5 years' declarations

2025-11-12 07:22:00, Aktualitet CNA

Fiscal Peace is being reviewed, 5% tax for businesses that will re-evaluate 5

The Ministry of Finance is reviewing the draft law "On the Fiscal Peace Agreement".

In the revised draft, in addition to pre-paying tax in exchange for not having a tax audit for 1 year, large businesses that will enter into a Fiscal Peace agreement with the tax administration will also have the opportunity to re-declare their financial statements for the last 5 years, in exchange for a 5% tax.

So, businesses with gross income over 14 million lek per year that voluntarily enter into an agreement with the tax administration for the prepayment of profit tax, which will be calculated on an increased taxable base (the declared profit of the previous year plus 18% increase), can voluntarily correct their previous declarations by paying 5% tax.

In the revised draft law "On the Fiscal Peace Agreement", the Ministry of Finance stipulates that the 5% tax will be applied to changes such as: revaluation of cash balances, writing off fictitious assets or liabilities, declaring previously undisclosed assets, redeclaring retained earnings and distributing them as dividends.

For all these cases, there will be no fines, interest or late payment interest, provided that the taxpayer declares in advance that he will benefit from the agreement.

Those who do not wish to make a full reassessment of their declarations can enter into an agreement only for the elements of taxable profit.

"Taxpayers who express their willingness to apply for the Agreement also have the right to systematize and submit financial statements for the last 5 years, reviewing or correcting various items, against a tax payment, as follows:

Monetary assets – restatement of the company's cash position (decrease or increase). Tax at the rate of 5% of any negative or positive deviation from the actual cash position;

Other financial assets - Write-off of fictitious amounts in the receivables item. Tax at the rate of 5% for writing off fictitious liabilities;

Write-off of declared fictitious tangible/intangible long-term assets. Tax at the rate of 5% against the write-off of fictitious inventory;

Declaration of tangible long-term assets not included in the financial statements. Tax at the rate of 5% for the inclusion of tangible/intangible long-term assets;

Erasure of fictitious liabilities/debts in financial statements. Liabilities are erased by considering them as taxable income against payment of tax at the rate of 5%;

Restatement of the company's retained earnings and distribution as dividends/profit. Tax at the rate of 5% on dividends and profit distribution.

"For all the above transactions, no fines, interest, or late fees will be applied, in order to encourage correction and financial transparency," the report states.

According to the Ministry of Finance, this instrument aims to promote transparency and avoid conflicts with the tax administration, by giving entities the opportunity to voluntarily correct previous declarations, without being punished.

This is a facility granted to taxpayers, who must declare that they will use it at the moment of applying to the tax administration for the agreement.

The draft stipulates that taxpayers who do not wish to reassess their returns may continue to enter into an agreement only with the elements of taxable profit, rate and payment of corporate income tax and personal business income tax.

Which categories of businesses can enter into a Fiscal Peace agreement?

The draft law stipulates that the Fiscal Peace Agreement will include businesses that have gross income over 14 million lek per year, whether natural persons or entities, and which do not benefit from the application of reduced rates or tax exemptions.

Businesses that agree to prepay profit tax, calculated on the previous year's profit plus 18%, and beyond this value pay an additional 5% tax, whether natural persons or entities, and who do not benefit from the application of reduced rates or tax exemptions.

As well as businesses that are regular with taxes and are not under investigation for fraud or income evasion./ Monitor