We, the KRESTON ROMANIA team, are ready to accompany you in the next period to find, together, the best solutions for continuing our business. In this sense, we have formed a team capable of covering all the areas of professional services needed to access the measures to support the business environment and also the aspects related to the contractual relations in force majeure situations, respectively: accounting experts, lawyers, reorganization and insolvency specialists and human resources inspectors.
We will keep you updated with all the regulations in the financial-fiscal field, in the shortest time since their appearance.

We will keep you updated with all the regulations in the financial-fiscal field, in the shortest time since their appearance.

Taking into account our practice and the package of legislative measures in order to diminish the negative effects in the context of the CORONAVIRUS crisis on 19.03.2020 we can draw up a first set of information / recommendations:

 

LEGISLATIVE MEASURES

EMPLOYMENT
FREE DAYS FOR PARENTS

Parents who are required to supervise children during the closing of the educational units – it is granted to one of the parents, at the level of 75% of the basic salary. It is refunded from the Guarantee Fund for salary claims up to 75% of the average gross salary (RON 5,429 * 75%).STATUS: entered into force by Law 19/2020, application rules pending.

TECHNICAL UNEMPLOYMENT According to art. 52, paragraph (1), lit. c) from the Labor Code, during the period of technical unemployment, the employees are entitled to an allowance of 75% of the basic salary.

For employeurs in the sectors directly affected by the measures stipulated by the Decree establishing the state of emergency, the allowances thus paid will be rfunded by the unemployment insurance budget, within the limit of 75% of the average gross salary per economy.

For employers in other sectors of activity, whose activity has decreased by at least 25%, the allowances will be refunded within the limit provided above, for a maximum of 75% of employees.

The measure is valid for the period in which the State of Emergency is established.

Employers will be required to maintain working relationships with employees for whom they benefit from these measures for a period of at least 6 months after resuming their activity.

Requests for reimbursement will be addressed to the Employment Agency by electronic mail and will be accompanied by the list of persons benefiting from the technical unemployment benefits and, in the case of employers directly affected by the state of emergency, by the certificate of emergency situation issued by the Ministry Economy, Energy and Business Environment.

The term for reimbursement of allowances is 30 days. 

The income tax and the social contributions related to the allowances that are the object of the refund are due on the 25th of the month following the one in which the payment is made from the unemployment insurance budget. Consequently, the employer will have to finance only the net amount of the allowance.

For technical unemployment benefits the work insurance contribution is not due.

The procedure for issuing the certificate is being elaborated.

 

FINANCIAL AREA

The Guarantee Fund for loans for SMEs was increased by 5 billion lei, with the possibility of gradually increasing up to 15 billion lei.

The interest is to be subsidized from the budget.

The guarantee fund covers 90% of the guarantee for loans less than 1 million lei and 80% of the guarantee for loans greater than 1 million.

During the state of emergency, starting with 16th of March 2020, small and medium-sized enterprises holding the emergency situation certificate issued by the Ministry of Economy, Energy and Business Environment, benefit from the deferred payment for utility services – electricity, natural gas, water, telephone and electricity services. internet, as well as the deferred payment of the rent for the building destined for registered office and secondary offices.

 

TAX

During the state of emergency, for fiscal obligations due from the date of entry into force of the emergency ordinance and unpaid until the cessation of the measures provided by the state of emergency, no interest and late payment penalties are calculated according to the Tax Procedure Code. This facility will be maintained for another 30 days from the end of the emergency.In this way, the taxpayers are eligible to participate, for example, in the public procurement procedures carried out during this period or not to cancel various authorizations.

Extension of the payment period for the building tax, the land tax, respectively the tax on the means of transport from March 31, 2020 to June 30, 2020, during which the taxpayers will continue to receive the bonuses established by the local councils.
 
 
OUR RECOMMENDATIONS
 
Financing:

  • Accessing the support schemes for SMEs
  • Contact the banks with which you have financing instruments in place, to extend them.
  • Although it is unlikely to identify other financiers available among banks, we anticipate a continuation of the trend of increasing business financing through private equity participation.
  • Obtain liquidity from assets such as real estate and equipment through leaseback instruments.
  • Personal investments – we can assist you with the best approaches from a fiscal perspective.
  • Evaluate the possibility of obtaining delays in the payment of utilities and other services based on emergency certificates.

 

 What immediate measures can be taken to protect the business:
  • Communicate with customers and suppliers, trying to understand their plans and clearly showing them the option for further cooperation
  • Review expenses with a significant impact on the result
  • Review the cash-flow and revenue and expenditure budget projections
  • Build at least 3 types of scenarios and already decide the appropriate measures for each of them
  • Analyze the opportunity of investment plans
  • Analyze the provisions of the insurance policies for business interruption and others already contracted, being unlikely to be able to access new insurance instruments.

 
In case of the questions, please, do not hesitate to contact us:

Carmen Cojocaru
Partner
carmen.cojocaru@kreston.ro
+40 727 333 336
Eduard Pavel
Partner
eduard.pavel@kreston.ro
+40 727 333 345