Factsheet for measure
RO-2021-1/1713
–
Updated
– measures in Romania
State aid scheme for HORECA sector
Schema de ajutor de stat pentru sectorul HORECA
Background information
In October 2020, the association of Romanian companies in the HoReCa sector, HORA, asked the Government for state aid totaling 20% of their turnover in 2019 - or €350 million in absolute terms. The association estimates that the industry's turnover plunged by some 70% compared to last year and that 40% of the sector's operators shut down their operations permanently after the first wave of the pandemic. In reaction to the sector representatives requests, the Government issued the Emergency Ordinance no. 224/2020 which provides for a state aid scheme that should compensate the losses registered by the companies in this sector due to the health crisis. The fiscal authorities data on turnover for the first half of 2020, compared to the first half of 2019, show the following:
-
Regarding accommodation structures, a reduction of turnover was found by 36.8%. The most affected were large taxpayers (-64.8%), followed by medium taxpayers (-48.4%) and small ones (-36.8%);
-
Regarding food structures, a reduction of turnover was found by 33.5%. The most affected were medium taxpayers (-40.5%), followed by small taxpayers (-32.2%) and large taxpayers (-27.8%);
-
Regarding travel agencies, there was a reduction in turnover by 60.5%. The most affected were large taxpayers (-71.4%), followed by medium (62.8%) and small (51.6%).
Content of measure
The state aid will be granted to the beneficiaries in the form of grants that will cover 20% of the loss in turnover disbursed in 2019, as a result of the COVID-19 crisis.
The maximum amount of state aid will be €800,000 per enterprise. The figures used must be gross, i.e. before deducting taxes or other charges.
Restaurants, boarding houses, hotels, travel agencies and other such companies are eligible to receive in 2021 state aid to partially compensate for the losses suffered as a result of the COVID-19 crisis. All these companies must be registered for tax purposes in Romania.
Registrations will be made online. The money will be awarded in the order of registration.
Updates
The following updates to this measure have been made after it came into effect.
|
19 February 2021
|
The measure was up-dated in February 2021 through the Government Emergency Ordinance no.10/2021. The following amendments to the measure have been made:
-
The timeframe for the implementation of this measure was initially set at July 2021, but it has been extended until 30 June 2022;
-
The beneficiaries of the measure must pay themselves for the financial reports attesting their status/economic activity enabling them to request state aid. The beneficiaries must prove through their activity reports the fact that the applicant’s activity has been impacted by the pandemic, visible in a comparison of the financial situation for 2019 and 2020;
-
Another category of beneficiaries was added - tourist guides (NACE code 7990);
-
The amount that can be received by a beneficiary though this scheme is maximum €800,000, but the total amount received by a beneficiary through other state aid scheme must not exceed in total €1,8 million;
-
The value of the aid for each beneficiary will represent 20% of the beneficiary' activity loss in 2020 as compared to 2019;
-
Companies receiving the state aid are obliged to keep the activity for which they have received the financing for at least 12 months from the date the payment has been made, or at least 24 months for the beneficiaries receiving over €200,000 (the previous legislation was providing that companies must keep their activity for 6 months only).
|
Use of measure
The budget of the state aid scheme is estimated at €500 million equivalent to lei, from the Romanian state budget, although the 2021 Budget Law is not ready. The state estimates that 73,211 beneficiaries will receive these aids, out of which 15,168 accommodation structures, 52,583 food structures and 5,460 travel agencies.
Target groups
Actors and funding
|
Actors
|
Funding
|
National government
|
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
The association of Romanian companies in the HoReCa sector, HORA, asked the Government for state aid and was involved in the design of the measure.
Views and reactions
No public view or positioning has been expressed regarding the measure.
Sectors and occupations
-
This case is sector-specific (only private sector)
-
|
Economic area
|
Sector (NACE level 2)
|
|
I - Accommodation And Food Service Activities
|
I55 Accommodation
|
|
I56 Food and beverage service activities
|
|
N - Administrative And Support Service Activities
|
N79 Travel agency, tour operator and other reservation service and related activities
|
This case is not occupation-specific.
Sources
-
31 December 2020: ORDONANȚĂ DE URGENȚĂ nr. 224 din 30 decembrie 2020 privind unele măsuri pentru acordarea de sprijin financiar pentru întreprinderile din domeniul turismului, structuri de cazare, structuri de alimentație și agenții de turism, a căror activitate a fost afectată în contextul pandemiei de COVID-19, precum și privind unele măsuri fiscale
(legislatie.just.ro)
-
19 February 2021: ORDONANȚĂ DE URGENȚĂ nr. 10 din 19 februarie 2021
(legislatie.just.ro)
