Background information

Government ordinance no. 6/2019 on the establishment of tax incentives allowed taxpayers to request the restructuring or cancellation of certain budgetary obligations or their accessories. The context of the intervention of the normative act was the public opposition to the tax authorities' approach in the last year to issue retroactive tax assessments for the payment of some differences in health insurance contributions. According to this normative act, the measure was to facilitate the activity of the debtor, whether a natural person, a legal person under public or private law or an entity without legal personality. Measures foreseen are the following: the restructuring of budgetary obligations outstanding to 31 December 2018 in the case of debtors that are legal entities with debts in an amount equal to or greater than the amount of one million lei (approx.€200,000); write-off of accessory obligations, applicable to all categories of debtors - natural persons, public or private legal entities and entities without legal personality, regardless of the amount of the tax liability due on 1 January 2018.

In order to revitalize the economy and avoid insolvency proceedings, the mechanism for restructuring budgetary obligations, introduced by Government Ordinance No. 6/2019, has been extended by including the possibility to request the restructuring of outstanding principal budgetary obligations on 31 December 2021. Interested parties could notify the authorities by January 2023 of their intention to benefit from the mechanism and restructuring requests were to be submitted by July 2023.

Content of measure

The procedure applies to debtors, legal persons under public or private law, who have outstanding principal budgetary obligations as of 31 December 2020, which have not been paid by the date of issue of the tax certificate by the central tax authority, as well as accessory budgetary obligations.

The debtors are in financial difficulty if they are unable to pay the outstanding principal budgetary obligations as of 31 December 2020 and the ancillary budgetary obligations. In order to benefit from the restructuring of budgetary obligations, the debtor must not be in insolvency proceedings under the law at the date of the decision approving the restructuring of budgetary obligations.

A debtor who is in insolvency proceedings by the date on which he is obliged to notify the competent tax authority of his intention to restructure and wishes to restructure budgetary obligations may notify the tax authority of his intention, provided that by the date of issuing the decision approving the request for restructuring he has emerged from insolvency proceeding.

In the context of the crisis generated by COVID-19 and in 2021, the application of tax measures in the area of collection of budget debts continued, measures that came as a support to the business environment. One of the tax measures concerns the access to tax facilities (payment instalments for budgetary obligations, cancellation of accessory payment obligations and restructuring of budgetary obligations) by natural and legal taxpayers.

Use of measure

The result of this measure was an increase in the amounts for which taxpayers accessed tax facilities from 4,603.6 million RON (approx. €810 million) on 30 June 2020 to 15,317.5 million RON (approx. €3,063.5 million) at the end of the first half of 2021.

In the first semester of 2023 applications were approved for the instalment payment of outstanding budgetary obligations. Applications were approved in the amount of 3,18 billion RON (approx. €630 million) while the amount collected in instalments was 3,39 billion RON (approx. €678 million). This represented an increase of 153% compared to the first semester of 2022, 1,34 billion lei (approx. €268 million).

Target groups

Workers	Businesses	Citizens
Applies to all workers	Applies to all businesses	Does not apply to citizens

Actors and funding

Actors	Funding
Company / Companies Other social actors (e.g. NGOs)	National funds

Social partners

Social partners' role in designing the measure and form of involvement:

	Trade unions	Employers' organisations
Role	Unknown	Unknown
Form	Not applicable	Not applicable

Social partners' role in the implementation, monitoring and assessment phase:

• Unknown
• Main level of involvement: N/A

Involvement

No public information available.

Views and reactions

There is no publicly available information about the social partners' views or reaction on the measure.

Sources

• 05 August 2019: Government Ordinance no. 6/31 July 2019 on the establishment of certain tax incentives (Ordonanță nr. 6 din 31 iulie 2019 privind instituirea unor facilități fiscal) (legislatie.just.ro)
• 30 June 2021: National Agency for Fiscal Administration, activity report first semester 2021 (Agenția Națională de Administrare Fiscală, Raport de activitate semestrul 1 anul 2021) (static.anaf.ro)
• 23 November 2021: Rescheduling of payment, in simplified form - beneficial in case of temporary financial difficulties (www2.deloitte.com)
• 23 June 2022: Extension of the deadline for restructuring the budgetary obligations, extension of the deadline for the application of the local reverse charge, amendments to the Customs Code (www.pwc.ro)
• 31 March 2023: National Agency for Fiscal Administration, activity report first semester 2023 (Agenția Națională de Administrare Fiscală, Raport de activitate semestrul 1 anul 2023) (static.anaf.ro)