Tax & Legal Flash no. 7
16 March 2020
Government Emergency Ordinance no. 32/2020 regarding the modification and addition of Government Emergency Ordinance no. 30/2020 regarding the modification and addition certain normative acts, as well as for establishing measures in the field of social security in the context of the epidemiological situation caused by the spread of the SARS-CoV-2 coronavirus and for establishing additional social protection measures
By the entry into force of GEO no. 32/2020, the conditions regarding the holding of a certificate of emergency situation, the diminishing of the income and the lack of financial capacity for payment of all the salaries of the employees were repealed, with regard to the benefit of the allowance granted by GEO no. 30/2020 in the case of temporary suspension of the individual employment contract, at the initiative of the employer, according to art. 52 paragraph (1) lit. c) of the Labor Code, as a result of the effects produced by the SARS-CoV-2 coronavirus.
According to the current regulation:
- the employees of the employers who, during the decreed state of emergency, temporarily reduce or interrupt their activity as a result of the effects of the SARS - CoV - 2 epidemic may benefit from the provisions regarding the payment of the allowance for the temporary suspension of the individual employment contract according to art. 52 paragraph (1) lit. c) from the Labor Code;
- in order to receive the allowance, the employers submit, by electronic mail, at the county agencies for employment, a request signed by the legal representative, accompanied by a declaration on their own liability and the list of persons who will benefit from the allowance. The model of the declaration shall be approved by Order of the ministry of labour and social protection to be further published in the Official Gazette;
- the payment of the allowances from the unemployment insurance budget is made within 15 days from the submission of the documents;
- the payment of the allowances is made to the employee in maximum 3 working days from the receipt by the employer of the respective amounts;
- in the situation where the employer’s budget for the payment of the personnel expenses permits, the allowance can be supplemented by the employer with the amount representing the difference up to a minimum of 75% of the basic salary corresponding to the job occupied;
- in case an employee has concluded several individual employment contracts and all are suspended as a result of establishing the state of emergency, the respective employee benefits from the allowance related to the individual employment contract with the most advantageous wage rights; • if the employee has at least one full-time contract that is active during the emergency establishment, the respective employee will not have the benefit of allowance.
As per GEO 32/2020, the benefit of a monthly allowance of 75% of the average gross wage earning for 2020 established by Law no. 6/2020, supported by the state budget, is also granted to:
- other professionals (according to the Civil Code, professionals are all those who systematically carry out organized activities consisting of the production, administration or transfer of goods or the provision of services, regardless of whether they have a lucrative purpose) who discontinue their activity as a result of the effects of SARS - CoV - 2 coronavirus, based on the statement on their own liability;
- individuals who obtain income exclusively from copyright and related rights that interrupt their activity as a result of the effects of SARS - CoV - 2 coronavirus, based on the documents requested by the National Agency for Payments and Social Inspection.
Other measures established by GEO no. 32/2020 concern:
- measures for the application of art. II of GEO no. 30/2020 for the payment of the insertion incentive;
- measures regarding the theoretical preparation of the vocational training programs in the conditions of GO no. 129/2000;
- the way of taxation for the indemnity received by the parents, regulated by Law 19/2020 which establishes granting days off for the child supervision due to temporary shutdown of the educational institutions. For this indemnity, the employer has the obligation to calculate, withhold and pay the income tax (10%), the health insurance contribution of health (10%), the social insurance contribution (25%) and the work insurance contribution (2.25%), in accordance with the provisions of the Fiscal Code.
- suspension / non-commencement, during the period of the state of emergency and for a period of 60 days from its termination, of the procedures for debt recovery and forced execution for all social assistance rights;
- suspension / non-commencement, during the period of the state of emergency and for a period of 60 days after its termination, of the measures of enforcement by garnishment of the budgetary, fiscal and commercial debts that apply to the monthly rights paid through the territorial houses of pensions. Government Emergency Ordinance no. 33/2020 regarding fiscal measures and the amendment of some normative acts
In order to stimulate the payment of the fiscal obligations due and to ensure public health, the emergency ordinance no. 33/2020 establishes the following measures:
- granting a discount for the taxpayers that pay in advance the corporate income tax due for the first quarter of 2020, by the deadline of 25th of April 2020 inclusive, namely, a 5% discount granted to the large taxpayers, respectively a 10% discount to the small and medium taxpayers;
- the above mentioned provisions are also applicable for the taxpayers that opted for a fiscal year different from the calendar year, in case they pay the tax due for the quarter/quarterly advance payment until the due date, between 25th April-25th June 2020;
- the above mentioned provisions are applicable as well for the taxpayers that pay the specific tax on activities, in case they pay the tax due for the quarter/quarterly advance payment;
- for paying the micro-enterprises income tax related to the first quarter of 2020, until 25th April 2020 inclusive, the taxpayers benefit of a 10% discount from the tax due calculated for the respective quarter;
- postponing the customs VAT payment for the taxable persons registered for VAT purposes that import, during the period of the state of emergency, and within 30 calendar days from the date that the state of emergency ceased, medicines, protective equipment, other medical devices or equipment and sanitary materials that may be used in the prevention, limitation, treatment and control of COVID-19;
- through the Emergency Certificate, based on self-declarations, is proved the decrease of revenue or receipts with at least 25 % in March 2020 by reference to the average of January and February 2020 or the partial or total business disruption, as a result of decisions issued by the competent public authorities during the state of emergency decreed.
Government Emergency Ordinance no. 35/2020 regarding the method of issuing and extending the validity of holiday vouchers, in the context of the epidemiological situation determined by the spread of COVID-19
According to Emergency Ordinance no. 35/2020, holiday vouchers for 2020 are issued only electronically. Also, the ordinance states that the period of validity of holiday vouchers, issued between March 2019 and December 2019, regardless of the type, will be extended until May 31, 2021.