Sequel of supporting measures adopted for the Romanian business environment, June 2020

Since the beginning of the COVID-19 pandemic, the Romanian authorities enacted several tax measures in order to prevent the business environment from collapsing. By way of example, some of the already implemented measures are the following:
(i) recalculation of the specific annual tax in order to reduce the impact on cash flow; (ii) granted tax benefits to certain categories of employees; (iii) extension of the deadlines for submitting the annual financial statements, etc.

Nowadays, in order to protect the business environment and the economic system, with a focus on small medium businesses that may be threatened by the occurrence of insolvency proceedings, Romania enacted Government Emergency Ordinance no. 90/2020 for the amendment of Government Emergency Ordinance no. 6/2019 regarding the establishment of certain fiscal facilities, as well as for the modification of other enactments (“GEO 90/2020”).

GEO 90/2020 focuses on addressing the potential economic blockage caused by Romania’s decision to suspend certain activities so that the spread of COVID-19 could be slowed down. In this regard, the provisions of GEO 90/2020 that are of significant matter are as follows:

• the possibility for certain debtors to restructure their budgetary obligations in order to avoid unwanted insolvency proceedings;
• the extension of certain measures in order to protect debtors from the payment of any interest and late payment related penalties, as well as from burdensome enforcement measures.

As such, we will further provide a detailed presentation of the noteworthy provisions established by GEO 90/2020.