Background information

Measures to combat the COVID-19 pandemic have generated financial difficulties for most economic operators, who face a severe lack of liquidity. The measures adopted by this ordinance will contribute to the stimulation and development of the Romanian capital, of the competitiveness of the economic operators, to the provision of additional financial resources at the disposal of the taxpayers paying profit tax, income tax for micro-enterprises or activity specific tax.

Content of measure

Companies that manage to increase their capital will be able to benefit, in the period 2021 to 2025, from business tax reductions (reductions in annual income tax / micro-enterprises income tax /activity-specific tax). Thus, the state wants to stimulate the recapitalization of companies that currently have negative equity. The provision applies for a period of five years, from 2021 to 2025. Other provisions of the normative act are: clarification of some aspects regarding the granting of bonuses for the payment of profit tax, suspension of monthly and occasional draws of the Tax Voucher Lottery and introduction of a new article in the Fiscal Procedure Code on digitization of information transmission procedures.

Use of measure

Not available.

Target groups

Workers	Businesses	Citizens
Does not apply to workers	Other businesses	Does not apply to citizens

Actors and funding

Actors	Funding
National government Employers' organisations Company / Companies	No special funding required

Social partners

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

	Trade unions	Employers' organisations
Role	No involvement	Consulted
Form	Not applicable	Consultation through tripartite or bipartite social dialogue bodies

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

• Unknown
• Main level of involvement: Unknown

Involvement

No available information.

Views and reactions

No available information.

Sources

• 03 September 2020: GEO no. 153 of September 3, 2020 for the establishment of fiscal measures to stimulate the maintenance / increase of the own capitals (legislatie.just.ro)