Accessing the benefits regulated by economic and fiscal measures elaborated in the context of the state of emergency – GEO 29/2020 and GEO 30/2020

Preamble:

We structured the measures into 3 categories:

  1. General, for all companies
  2. Applicable only for companies directly affected by the state of emergency (technical unemployment and deferment of payment of utilities and rent – attention: the deferment of utilities and rent based on the state certificate of emergency is only valid for companies in the SME category).
  3. Applicable for companies whose activity was reduced as a result of the epidemic (technical unemployment).

 

Measures applicable to all companies

  1. There is no interest and penalties for budget debts due after March 21 and unpaid during the period of emergency and 30 days after its termination (May 16)

Formalities – not required

  1. The payment deadlines for taxes on buildings, land and vehicles are deferred from 31th March 2020 until 30th June 2020.

Formalities – not required

  1. Accelerated VAT reimbursements and recoverable amounts representing medical leave incurred by the employer.

Formalities – submission of reimbursement requests for amounts not already requested.

  1. The reimbursement of the compensation paid by the employer to the employees who must supervise their children:
  • You can not pay more than 75% of the average gross salary in the economy
  • The reimbursement is made only at the level of the net income, the social contributions being left to the employer
  • It can be granted only after the exhaustion of other alternatives, such as work from home or teleworking.

Formalities – Annex 1

 

Measures applicable to companies directly affected by the measures ordered in accordance with the Decree establishing the state of emergency (companies that have discontinued the activity in whole or in part – transport, tourism, horeca, population services, shopping centers, etc.)

  1. Support from the budget of the technical unemployment allowances:
  • Within the limit of 75% of the average gross salary on the economy (5,429 lei * 75% = 4,072 lei) for all employees whose contract was suspended according to art. 52, s. 1, lit. c) of the Labor Code
  • It is applied during the state of emergency
  • It is granted on the basis of a request submitted to ANOFM, accompanied by the certificate of state of emergency issued by the Ministry of Economy (the procedure will be available).
  • The employer will request for the reimbursement of gross indemnities (including contributions and income tax).
  • The payment term of the social contributions and the income tax is given on the 25th of the month following the one in which the amount was collected from ANOFM, so the employer must finance from his own sources only the net benefits.
  • For the technical unemployment benefitsthe the insurance contribution for the work is not due
  • The income tax is calculated without the application of personal deductions.

Formalities – Annex 2

  1. Postponement of payment of utilities and rent for the registered office and secondary offices – applicable only for SMEs.

 

Measures applicable to companies that reduce their activity as a result of the effects of the COVID 19 epidemic

Support from the budget of technical unemployment allowances:

  • Within the limit of 75% of the average gross salary on the economy (5,429 lei * 75% = 4,072 lei) for 75% of the employees whose contract was suspended according to art. 52, s. 1, lit. c) of the Labor Code
  • It is applied during the state of emergency
  • It is granted on the basis of a request submitted to ANOFM, accompanied by a declaration on their own responsibility stating that the receipts have decreased by at least 25% compared to the average of January and February 2020 and that they do not have the financial capacity to pay all employees.
  • The employer will request the reimbursement of gross allowances (including contributions and income tax).
  • The payment term of the social contributions and the income tax is given on the 25th of the month following the one in which the amount was collected from ANOFM, so the employer must finance from his own sources only the net benefits.
  • For the technical unemployment benefits the insurance contribution for the work is not due
  • The income tax is calculated without the application of personal deductions.

Formalities – Annex 3

 

ANNEX 1 – Procedure for granting parents free days

The granting of free days to one of the parents for the supervision of the children, in the situation of temporary closure of the educational units where they are enrolled, as a result of extreme situations was regulated by Law no. 19/2020.

The free days are granted at the request of one of the parents, deposited with the employer of the person who will supervise the child during the stipulated period.

Requests will be accompanied by a statement on their own responsibility of the other parent that he / she has not requested work days off at his / her place. The model of the declaration was published in Decision 217/2020.

The number of free days granted shall be determined by the Government for each situation.

For each free day, the employee benefits from an allowance in the amount of 75% of the salary corresponding to a working day, but not more than the correspondent per day of 75% of the average gross wage in the country.

In order to settle the amounts the employers submit the applications to the employment agencies. The application will be accompanied by the following documents:

  • List of employees who have benefited from the free days, as well as the paid allowance;
  • Children from the payment states from which the allowance may be granted;
  • Statement on the own responsibility of the legal representative of the employer by which it is stated that the list (mentioned above) contains the persons who fulfill the conditions;
  • Proof of payment of contributions and taxes for the month in which the allowance was paid.

The application dated and signed by the legal representative will contain the following information:

  • Employer identification data, including e-mail address;
  • The bank account;
  • The name of the legal representative of the employer;
  • The requested amount;
  • Number of employees for whom the amount was requested.

The settlement of the amounts paid by way of indemnity shall be made within 60 calendar days from the date of registration of the documents.

Only the net amounts paid to employees will be settled.

In exceptional cases (e.g. the determination of inadvertents between the information in the documents) the term is extended by up to 15 days.

The requests will be sent by electronic mail to the official address of the institution: relatiicupublicul@mmuncii.gov.ro

After sending the documents, the Agency for employment has the obligation that within 24 hours to communicate to the employer the registration number of the application.

 

ANNEX 2 – Technical unemployment procedure for companies directly affected by the measures ordered in accordance with the Decree establishing the state of emergency (companies that interrupted the activity in whole or in part – transport, tourism, horeca, population services, shopping centers, etc.)

Step 1: drawing up additional documents in order to suspend the employment contract according to art. 52, paragraph (1), letter c) and their registration in REVISAL

Step 2: drawing up the payment states for the technical unemployment benefits and the payment of the net indemnities , the elaboration of the list with the employees and the obtaining the certificate of state of emergency

Step 3: submission of the reimbursement request to ANOFM, by email, accompanied by the list of employees and the state certificate of emergency

Step 4: Preparation and submission of declaration 112

Step 5: recover the amount from ANOFM (within 30 days from request)

Step 6: payment of social contributions and income tax on wages up to the 25th of the month following the one in which the amount was collected from ANOFM.

 

ANNEX 3 – Technical unemployment procedure for companies that reduce their activity as a result of the COVID -19 epidemic

Step 1: drawing up additional documents in order to suspend the employment contract according to art. 52, paragraph (1), letter c) and their registration in REVISAL

Step 2: drawing up the payment states for the technical unemployment benefits and the payment of the net compensation, the elaboration of the list with the employees and the obtaining of the state certificate of emergency

Step 3: submission of the request for reimbursement to ANOFM, by email, accompanied by the list of employees and the declaration on their own responsibility which results in the fulfillment of the conditions.

Step 4: Preparation and submission of declaration 112

Step 5: recover the amount from ANOFM (within 30 days from request)

Step 6: payment of social contributions and income tax on wages up to the 25th of the month following the one in which the amount was collected from ANOFM.

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