Background information

The institution of state of emergency led to the closing down of several economic activities. Some companies, in specific sectors, have been obliged by law to close their activities. Other companies were not obliged by law to interrupt their activities, but the consequences of lockdown made the interruption necessary. In several cases, companies have postponed the payment of the rent. All these facts led to a reduction in the income of the companies and difficulties in payments. In order to support the economic recovery, the Government announced in May tax facilities for payment of the annual building tax or building charge of those entities that have been hit by the effects of the COVID-19 crisis.

Content of measure

For the taxpayers paying the building tax/building charge, Local Councils/General Council of the Municipality of Bucharest can adopt resolutions, by 14 August 2020 inclusive, on the reduction of the annual tax on buildings by up to 50%, for non-residential buildings, owned by individuals/legal persons if during the period for which the state of emergency was declared the owners or users of the buildings were required, according to the law, to completely interrupt their activity. The GEO 69/2020 also provides that Local Councils/General Council can exempt from the payment of the monthly building charge due by lessees, tenants, holders of the right to administer or use a public or private property of the state or of the administrative-territorial units, if during the period for which the state of emergency was decreed the users of the buildings were required, according to the law, to completely interrupt their economic activity.

Use of measure

For payment reduction of the annual tax on non-residential buildings, granted under resolutions of local public administration authorities, the owners of the buildings have to submit by 15 September 2020, inclusive, a reduction application accompanied by a sworn-statement, to the local tax authority in whose territorial area the building is located.

For exemption from the payment of the monthly building charge, granted under resolutions of local public administration authorities to lessees, tenants, holders of the right to administer or use a public or private property of the state or administrative-territorial units, these categories will file, by 15 September 2020, inclusive, with the local tax authority in whose territorial area of ​​competence the building is located, an exemption application, accompanied by a sworn-statement.

Target groups

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

Actors and funding

Actors	Funding
National government Local / regional government	No special funding required

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

The involvement of social partners in the design of the measure is unknown. There is no involvement of the social partners in the implementation and monitoring of measure.

Views and reactions

No opinions have been publicly expressed by social partners.

Sources

• 14 May 2020: ORDONANȚĂ DE URGENȚĂ nr. 69 din 14 mai 2020 pentru modificarea și completarea Legii nr. 227/2015 privind Codul fiscal, precum și pentru instituirea unor măsuri fiscale (legislatie.just.ro)
• 26 October 2020: ORDONANȚĂ DE URGENȚĂ nr. 181 din 22 octombrie 2020 (legislatie.just.ro)