On 21 March 2020, the Government Emergency Ordinance no. 29/2020 (GEO) was published in the Official Gazette, encompassing a series of critical financial measures, intended to help the economy in general and in particular the companies directly affected by the COVID-19 crisis.
The adopted measures are:
- Stay or delay of enforcement procedures. The government decided to stay or delay the commencement of enforcement procedures against natural persons, save for the ones purporting to recover debts established by a final criminal court decision.
- Garnishments over incomes and monetary debts due by third parties to the debtor (Romanian, popriri) will be stayed ope legis by the credit institutions or obliged third parties, without any formality being required from the fiscal authorities.
- Exemption from interest and penalties. Fiscal obligations becoming due after the entry into force of the emergency ordinance that will comprise the emergency tax measures, and which are not settled until such emergency tax measures end, will not bear interest or delay penalties.
- The emergency measure above is envisaged to be extended for 30 days after the state of emergency ends so that the taxpayers may be eligible for public procurement offers and may avoid cancelation of different licenses.
- Tax debt restructuring request as per Government Ordinance 6/2019 deadline extended until 31 July 2020.
- Postponement of due date for declaring the beneficial owner. Due date for submitting the affidavit regarding the actual beneficial owner was extended three months from the cease of the emergency state.
- Income tax facilities. Taxpayers who pay advanced quarterly instalments for the annual income tax may freeze the current level of instalments during the entire 2020. The same facility will be given to taxpayers for whom the taxable year is different than the calendar one in what regards the remaining advanced payments due for the current taxable year and the instalments that will be due for the new one, as long as they fall under 2020.
- Other taxes. Deadlines for paying taxes on properties or on transportation vehicles are delayed from 31 March 2020 to 30 June 2020, including the bonification for early payment.
- Delayed payment of utilities. Small and medium enterprises (SME) which will obtain the emergency certificate issued by the Ministry of Economy, Energy and Business Environment may benefit from delayed payments of electricity, gas, water, telecommunications and internet as well as of the rent for the premises of the registered or branches.
- Special regime of force majeure. Force majeure may be raised with respect to contracts (other than the ones executed by SME which obtained the above-mentioned emergency certificate) affected by the emergency state conditional upon the interested party proving by written documents (including electronic communications) their attempts to re-negotiate and adapt the contract to the exceptional circumstances.
- Other measures. The National Company UNIFARM SA may benefit from a RON 1.15 billion loan for acquisition of medical and sanitary equipment.
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