Update on Certificates for State of Emergency following the publication of the Minister of Economy, Energy and Business Development’s Order no. 791 dated 24 March 2020
The Minister of Economy, Energy and Business Environment issued the Order no. 791 dated 24 March 2020 (Order no. 791) aiming to implement the issuance of Emergency State Certificates (CSEs) in relation to the current unusual and difficult situation in the Romanian economic environment caused by COVID-19. This note presents an update on our article dated 23 March concerning the CSEs main features.
Eligibility. CSEs can only be issued for companies which are facing: (i) a total or partial shutdown following the public authorities’ decisions, or (ii) a decrease in their revenues of minimum 25% in March 2020, compared with the average revenue obtained in January – February 2020. Moreover, a company can request the issuance of only one CSE.
CSEs scope. According to the Minister of Economy, Energy and Business Environment, the CSE may be used (i) in the companies’ relation with public institutions in order to benefit from specific facilities or support schemes, or (ii) in the companies’ commercial relations.
CSEs issuance procedure. CSEs applications will be sent exclusively through http://prevenire.gov.ro/ platform, in which the applicant will be requested to provide their identification data and an affidavit in which the company declares that its information related to their total or partial shutdown or the decrease of their revenues are true. The platform should be put in place no later than 31 March 2020.
All documents uploaded on the platform must be electronically signed by the company’s legal or designated representative. CSEs will be issued automatically after the application’s validation.
According to the Order no. 791, public authorities can verify the accuracy of the information provided through the uploaded documents after CSEs issuance and apply sanctions if the information does not reflect the reality.
23 March 2020
The Romanian Government issued a draft decision aiming to implement the issuance of Emergency State Certificates (CSEs) in relation to the current unusual and difficult situation in the Romanian economic environment caused by COVID-19. This note presents the main features of CSEs.
Eligibility. CSEs can only be issued for companies operating in the following sectors: (i) transport, (ii) tourism, (iii) HoReCa, (iv) events planning, (v) advertising, (vi) private education and its subsequent activities, (vii) clothing, footwear and leather goods manufacturing and (viii) services for the general public. More specific details on the eligibility topic will be provided through a list of eligible NACE codes to be issued by the Minister of Economy, Energy and Business Environment.
CSEs scope. According to the Romanian Government decision’s draft, the Ministry of Economy, Energy and Business Environment, through a designated committee, will issue CSEs to companies which are facing severe difficulties in the course of business. The CSEs may be used:
- in the companies’ relation with third parties in order to prove their economic difficulties;
- in order to obtain specific tax facilities established by the central or local tax authorities;
- in the process of renegotiating certain contracts or in any relationship with companies; or
- in relation to banking, financial or leasing institutions, or any other public institutions.
CSEs issuance procedure. CSEs applications will be sent through http://prevenire.gov.ro/ platform, in which the applicant will be requested to provide among others (i) the reasons for their CSEs application, (ii) justification of the company’s need and (iii) data relating to financial statements.
Moreover, the economic operator will be requested to upload (i) the certified cashflow records for the month in which the company registered a decrease in revenues compared to the same period of the precedent year and (ii) an affidavit in which the company declares that its difficulties are caused by the occurrence of the state of emergency.
Should the decrease in revenues be of more than 40%, the CSE will be issued within 5 business days. Otherwise, the CSE will be issued within 20 days.
CSEs validity. The CSEs are only valid in the year of their issuance.
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