Procedure to claim tax benefits for education of employees’ children

Procedure to claim tax benefits for education

Government Emergency Ordinance (GEO) 30/2021, dated 21 April 2021, and the subsequent ANAF Order 653/2021, dated 22 April 2021, have set out a procedure whereby employers can benefit from the deduction from tax corresponding to expenses for payment for the education of the young children of employees.

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Mădălina Racovițan

Tax Partner, Head of People Services

KPMG in Romania

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This deduction was granted under previous legislation and was applicable for the period 1 November 2020 to 31 March 2021, but since no procedure had been set, employers had, in practice, been unable to deduct these amounts from their tax liabilities.

The newly issued procedure enables employers to submit a special declaration (Declaration 711) to the tax authorities, whereby their tax liabilities can be diminished, through a reduction in the amount owed corresponding to the expenses incurred in paying for the education of the employees’ young children.

The deadline for submission of the rectification declaration is 25 April 2021 (in fact, since this was on a Sunday, the deadline was extended to 26 April 2021).
 

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