Government To Set New Deadline Facilitating Collection Of Ancillary Clawback Tax

1. New deadline and related facility

   On September 26, 2012, the Romanian Government enacted EGO 53. Under this law, pharmaceutical companies owing clawback tax from Q4 2009 to Q3 2011 may benefit from certain fiscal facilities, if they pay in full such tax and related interests to the state budget by October 29, 2012.

   As per GO 17/2012, such fiscal facilities include cancellation of all delay penalties ("penalitati de intarziere") and cancellation of 50% of delay gross-up fees ("majorari de intarziere") related to the above tax.

2. History of Romanian clawback tax

   Clawback tax is a common practice in EU countries such as Austria, Belgium, Hungary, Italy, Netherlands, Poland, Spain and the United Kingdom. In essence, clawback tax requires pharmaceutical companies that are selling medicines to the public...