Announcements

The state fully exempts, during the state of emergency, taxes and taxes on wages paid to furloughed employees on economic agents, who had to discontinue their activity as a result of the anti-epidemic restrictions imposed by the authorities.

The exemption mechanism involves immediate reimbursement from the State Budget of payments related to wage taxation made by economic agents in BASS, FAOAM and Local Budgets. This mechanism will ensure the sustainability of these 3 budgets, as well as the reimbursement of some 43 % of wage expenditure to economic operators.

For economic operators in the other branches, the State reimburses 60 % of the amount of taxes on salary payments under the same mechanism.

The State Fiscal Service will shortly present the detailed information on practical actions to be taken by economic operators to receive the money from the Social Budget.

With the essential top-up (tripliation) of the ‘unemployment fund’, the State will support the working-age citizens who have temporarily remained without a service. Unemployment benefits will be paid for the persons eligible for these payments under the current legislation according to the procedures in force, but their size will not be lower than the guaranteed minimum wage for the real sector (lei 2,775 for 2020).

At the same time, for individuals who, under the current legislation, cannot benefit from these incentives, the state undertakes to pay the respective unemployment benefits in the size of the minimum guaranteed wage of lei 2,775. This call can also benefit citizens who have returned across borders and are looking for a job.

In order to benefit from these payments, unemployed persons are to be addressed to the offices of the Employment Agency.

For people in diaspora, who have returned to the country and wish to activate/invest in the aggregate sector, the state will provide financial support via the AIPA. For these purposes the Agricultural Grant Fund is to be supplemented by 50 mln.lei

We recall that the following measures have been approved and implemented in support of citizens and the economy to date:

— defer payment of the tax on entrepreneurial income related to the first quarter of 2020, for the period ending on 25 June 2020;

— deferring until 25 April 2020 the declaration and payment of the income tax to 2019 by (1) individual entrepreneurs or households (i.e. farmer), non-taxable VAT, with 3 employees and (2) economic agents subject to small and medium-sized enterprises (the IVAO regime);

— reducing the VAT rate from 20 % to 15 % for the HORECA sector as of 1 May 2020;

— the introduction of the moratorium on all state controls until 1 June 2020. In the event of an extension of the Emergency Station, this deadline will be extended;

— extending by 30 days the time limit for examining infringements of tax and customs legislation or examining tax and customs appeals that occurred during the state of declared emergencies;

— suspension of tax visits during the declared state of emergency;

— annul the obligation to carry out the mandatory audit of individual financial areas for the year 2019, with the exception of public-interest entities;

— enabling commercial banks and non-bank credit institutions to reschedule retail and corporate mortgages;

— additional measures to stimulate commercial banks to provide credit to the economy and citizens at more advantageous conditions, inter alia via the downward revision in the base rate;

In addition, for the 24/24 business support, the State Tax Service’s Single Apel Centre (080001525) provides advisory support to citizens and businesses.