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Are employers benefiting from Section (1) of §4 of Government Decree No. 61/2020 (III.23) exempt from paying social contribution tax under Section (1) of §1 of the Decree if the employee's employment relationship was terminated in March
As per Section (1) of §4 of Government Decree No. 47/2020 (III.18) Section (4) and (2) of §1 of Government Decree No. 61/2020 (III.23), favorable rules are applicable to employees for the months of March, April, May and June of 2020. Are employers benefiting from Section (1) of §4 of Government Decree No. 61/2020 (III.23) exempt from paying social contribution tax under Section (1) of §1 of the Decree if the employee's employment relationship was terminated in March, but prior to or subsequent to the date that Government Decree No. 61/2020 (III.23) entered into force? As examples, what if the employment relationship was terminated on March 6th?
There is no rule which excludes the application of the favorable rules of Government Decree No. 61/2020 (III.23) to incomes paid for employment relationships terminated during the month of March for work performed in March, regarding tax and contribution obligations specifically calculated for March. Based on the above, the benefits and exemptions listed in Government Decree No. 61/2020 (III.23) shall also be applicable to employment relationships terminated prior to the Decree's entry into force.
Source: National Tax and Customs Administration (NAV)
There is no rule which excludes the application of the favorable rules of Government Decree No. 61/2020 (III.23) to incomes paid for employment relationships terminated during the month of March for work performed in March, regarding tax and contribution obligations specifically calculated for March. Based on the above, the benefits and exemptions listed in Government Decree No. 61/2020 (III.23) shall also be applicable to employment relationships terminated prior to the Decree's entry into force.
Source: National Tax and Customs Administration (NAV)