In the context of the COVID-19 pandemic, the Romanian authorities have published a new series of measures with impact in the fiscal field, social protection, loans and leasing operations.
The Emergency Ordinance no. 32/2020
The Romanian Government adopted the Emergency Ordinance no. 32/2020, published in the Official Gazette no. 260 dated March 30, 2020, amending and supplementing the provisions of GEO 30/2020, for establishing measures in the field of social protection in the context of the epidemiological situation determined by the spread of the SARS-CoV2 coronavirus.
In order to grant the necessary amounts for the payment of the technical unemployment indemnity, the employers will submit, by e-mail, to the competent agencies for employment:
- A request signed and dated by the legal representative;
- A statement on own responsibility;
- A list of the employees who will benefit of the indemnity.
Employers will assume responsibility for the accuracy and veracity of the summited data and the payment of the allowance will be made to the bank accounts opened by employers at commercial banks, within 15 days from the submission of documents to agencies for employment (AJOFM).
Subsequently, after receiving these amounts, the employers will transfer the indemnity to the employees, within of 3 working days maximum.
In the situation where the budget of the employer allows, the indemnity can be supplemented by the employer with amounts representing the difference of up to at least 75% of the basic salary corresponding to the job occupied.
Other professionals, as regulated by art. 3 paragraph (2) of the Civil Code ([…] all those who operate a business), who interrupt the activity as a result of the effects of the SARS-CoV-2 coronavirus, during the state of emergency, but also the natural persons who obtain income exclusively from the rights of author and related rights, can benefit from the state budget, based on the affidavit on their own responsibility, of a monthly indemnity of 75% of the average gross salary.
The indemnity is subject to taxation and payment of social insurance contributions, social health insurance, as well as payments of the insurance contribution for work.
The Emergency Ordinance no. 32/2020
The Romanian Government adopted the Emergency Ordinance no. 33/2020, published in the Official Gazette no. 260 dated March 30, 2020, regarding certain fiscal measures and amendments of some normative acts.
As per this ordinance, new tax measures are introduced for fiscal obligations due during the state of emergency period and in the next 30 days from the date of termination.
1. Bonus percentages are granted for taxpayers who pay the corporate income tax due for the Q1 of 2020 until April 25, 2020, as follows:
- 5% for large taxpayers;
- 10% for medium taxpayers;
- 10% for the rest of the taxpayers.
For those taxpayers who opt for a financial exercise different from the calendar year, the bonus is granted if the payment is performed between April 25-June 25, 2020.
The 10% bonus is granted also for taxpayers who are declaring tax on microenterprise and pay the tax related to Q1 2020 until April 25, 2020.
The bonus percentage is applied on the corporate income tax/microenterprise tax due, and the determined value is deducted from the total amount of tax to be paid.
Taxpayers of corporate income tax will include the bonus separately in the annual income tax return.
2. VAT will not be paid in the customs for imports related to medicines, protective equipment, other medical devices or medical equipment and sanitary materials that can be used in the fight against COVID-19.
The tax shall be highlighted in the VAT return by the importers, both as collected and deductible VAT amount.
The Emergency Ordinance no. 37/2020
The Romanian Government adopted the Emergency Ordinance no. 33/2020, published in the Official Gazette no. 260 dated March 30, 2020, establishing a series of facilities applicable to loans and leasing operations contracted by certain categories of debtors.
This measure comes as a support measure in the exceptional circumstances created by the SARS-CoV-2 outbreak, for individuals, including authorized individuals, individual and family businesses, liberal professions and legal entities.
Thus, the main measure, the obligation to pay the instalments related to the loans, representing capital rates, interest and commissions, granted to the borrowers by the creditors until the date of entry into force of this emergency ordinance, will be suspended at the request of the debtor for a period up to 9 months, but not more than December 31, 2020.
The measure is granted exclusively to borrowers whose incomes have been directly or indirectly affected by the serious situation generated by COVID-19 pandemic. In order to benefit from the suspension of the payment of rates, the interest and the commissions, the debtors will send a request in this respect, by post/courier or by e-mail, to the contact details specified within the credit agreement or through another communication channel offered by creditor, no later than 45 days after the applicability of this emergency ordinance.
The debtor can opt for the suspension of the obligation to pay the instalments related to the loans for a period between one month and nine months but will not exceed December 31, 2020.
The creditor will analyse the request and approve it in the conditions provided in the norms of application of the ordinance, norms that will be approved by Government decision within 15 days from its entry into force.
Suspending the payment of rates will have the following effects:
- The duration of the credit/lease will be extended by a period equal to that of the suspension;
- The interest related to the duration of the suspension is capitalized in the existing credit balance;
- The capital thus increased shall be paid in instalments for the entire remaining period until the new maturity of the loan or lease, extended with the period in which the payment of the rates was suspended.