Fiscal measures in the context of pandemic

I. Measures concerning some provisions of Law no. 227/2015 on the Fiscal Code

  1. Extension of the payment deadline for the tax on buildings, the land tax, respectively the tax on means of transport from 31 March 2020 to 30 June 2020.
  2. Extension of the granting of the bonus established by the decision of the Local Council for the advance payment for the tax on buildings, the land tax, respectively the tax on means of transport, taxes due for the whole year of the taxpayer, until 30 June 2020.
  3. The taxpayers applying the system of annual corporate income tax reporting and payment, with quarterly advance payments, can make quarterly advance payments for the year 2020 at the level of the amount resulting from the calculation of the tax on current quarterly profits. The method of calculation shall be maintained for all quarters of the fiscal year 2020.
  4. For taxpayers who have opted for the financial year other than the calendar year, the measure in point 3 shall apply to advance payments due for the remaining quarters of the amended year ending in the year 2020 and for the calculation of those relating to quarters of the amended fiscal year beginning in 2020 and falling within the calendar year 2020.

II. Amendments to G.E.O. no. 6/2019 on the establishment of fiscal facilities

  1. The extension of the deadline for the debtor to notify the competent fiscal body of the intention to restructure budgetary obligations by 31 July 2020, under the sanction of the revocation of the right to benefit from the restructuring of budgetary obligations.
  2. The extension of the deadline for submitting the application for restructuring of budgetary obligations by 30 October 2020, under the sanction of the revocation of the right to benefit from the restructuring of budgetary obligations.

III. Derogations from the provisions of the Law no. 207/2015 on Fiscal Procedure Code

  1. Interest and late payment penalties shall, under the Fiscal Procedure Code, not be calculated or due, for fiscal liabilities due from the date of entry into force of the G.E.O. no. 29/2020 and not paid until the end of the measures ordered by this law, respectively until 30 days after the emergency has been corrected;
  2. The fiscal liabilities due from the date of entry into force of the G.E.O. no. 29/2020 and not paid until the end of the measures ordered by this law, respectively until 30 days after the emergency has been corrected shall not be considered as overdue fiscal liabilities;
  3. The suspension non-commencement of enforcement measures by attachment of budgetary claims.

Exception: the measure does not concern enforcement actions which are applicable to the recovery of budgetary claims established by judicial decisions in criminal matters.
The measures to suspend the enforcement by attachment to the amounts of money and venturous funds shall apply, through the law effect, to credit institutions or third parties which are posted without further formalities by financial authorities.
All these three fiscal measures will be terminated within 30 days of the state of emergency.

IV. Measures taken to support the small and medium-sized enterprises

1. The small and medium-sized enterprises can benefit, during the emergency state, from deferral of payment for utility services – electricity, natural gas, water, telephone and internet services, but also from deferral of rent for the building for registered office and secondary establishments, if they meet all of the following conditions:

  • They interrupted all or a part of their activity on the basis of decisions issued by the competent public authorities during the emergency state;
  • They hold the emergency certificate issued by the Ministry of Energy, Economy and Business Environment.

2. In contracts in in the development, other than those referred to in point 1, concluded by small and medium-sized enterprises, force majeure cannot be invoked against them, until after the attempt, proven by documents communicated between the parties by any means, including electronic means, to renegotiate the contract for adapting their clauses to take into account the exceptional emergency situation ( derogation from any legal provisions to the contrary).
Small and medium-sized enterprises that meet the following conditions will benefit from this measure:

  • They interrupted all or a part of their activity on the basis of decisions issued by the competent public authorities during the emergency state;
  • They hold the emergency certificate issued by the Ministry of Energy, Economy and Business Environment.

3. A presumption of force majeure shall be established of the unforeseeable, absolutely invincible and unavoidable circumstances to which article 1351 (2) of the Civil Code refers, resulting from an action of the authorities in implementing the measures imposed by the prevention and combating of the pandemic caused by the infection with the coronavirus COVID-19, which affected the SMEs activity, assignment certified by the emergency statement certificate.

  • The presumption may be rebutted, by any means, by the party concerned.
  • The unpredictability shall be reported at the time of the birth of the affected legal report.
  • The measures taken by the authorities in accordance with the regulatory act establishment the emergency state are not unforeseeable.

4. During the emergency state, the small and medium-sized enterprises due no late penalties for the performance of obligations arising from contracts concluded with public authorities, if they meet all of the following conditions:

  • They interrupted all or a part of their activity on the basis of decisions issued by the competent public authorities during the emergency state;
  • They hold the emergency certificate issued by the Ministry of Energy, Economy and Business Environment.

!!! From these measures will benefit only the small and medium-sized enterprises, that is to say, those SMEs which fulfill the following conditions:

a) They have an average annual number of employees of less than 250;
b) They achieve an annual turnover equivalent to up to 8 million euro or have the annual balance sheet result that does not exceed the lei equivalent of 5 million euro;
c) They comply the criterion of independence, that means they are not held more than 25% of the share capital or voting rights by another company or companies together, which are not SMEs.

By exception, it is considered to be independent also the enterprise which fulfill the following conditions:

i. The enterprise is owned by public investment companies, by venture capital companies, by institutional investors, by universities or not-for-profit research centers, provided that they do not exercise, individually or together the control of enterprises;
ii. The capital is divided in such a way that the holders cannot be identified, the enterprise declares in good faith, on its sole responsibility, that it is not held more than 25% by another company or companies together, which are not SMEs.

V. Measures targeting the following professions carrying our services of public interest

The forms of practice of the profession of public notary

The forms of practice of the profession of lawyer

The forms of practice of the profession of court executor

The forms of practice of the profession of public notary, lawyer and court executor can benefit, during the emergency state, from deferral of payment for utility services – electricity, natural gas, water, telephone and internet services, but also from deferral of rent for the building for registered office and secondary establishments, if they meet all of the following conditions:

  • Their activity is directly affected by the measures that the public authorities had adopted to prevent and combat the pandemic caused by the infection with the coronavirus COVID-19;
  • They fulfill the conditions laid down in the Government Decree, under which the beneficiaries of this measure are established.

VI. Measures targeting family doctors’ cabinets and dentists’ cabinets

The family doctors’ cabinets and dentists’ cabinets can benefit, during the emergency state, from deferral of payment for utility services – electricity, natural gas, water, telephone and internet services, but also from deferral of rent for the building for registered office and secondary establishments, if they meet all of the following conditions:

  • Within them, no more than 20 persons are employed, in any form;
    Their activity is directly affected by the measures that the public authorities had adopted to prevent and combat the pandemic caused by the infection with the coronavirus COVID-19;
    They fulfill the conditions laid down in the Government Decree, under which the beneficiaries of this measure are established.

VII. Measures targeting national sports federations and sports clubs

The national sports federations and sports clubs can benefit, during the emergency state, from deferral of payment for utility services – electricity, natural gas, water, telephone and internet services, but also from deferral of rent for the building for registered office and secondary establishments, if they meet all of the following conditions:

  • They have a certificate of sportive identity;
  • Their activity is directly affected by the measures that the public authorities had adopted to prevent and combat the pandemic caused by the infection with the coronavirus COVID-19;
  • They fulfill the conditions laid down in the Government Decree, under which the beneficiaries of this measure are established.

For details, information and/or support please send us a message to office@psbh.ro.

Article by our colleague lawyer Lavinia Chițuleasă.

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