Companies, entities without legal personality or natural persons who have remaining fiscal obligations to the state budget at 31.12.2018 will benefit from tax facilities in the form of payment facilities, cancellation of ancillary or even principal tax liabilities (debts). The main budgetary obligations remaining as of December 31, 2018 are also understood as the budgetary obligations declared by the debtor or established by the competent fiscal body by decision after January 1, 2019, related to the fiscal periods up to December 31, 2018.
Government Ordinance no. 6 of July 31, 2019, published in the Official Gazette no. 648 of August 5, 2019, regulates the granting of facilities according to the amount of fiscal obligations due to the state budget on December 31, 2018. Thus, two situations are highlighted:
- Establishing measures to restructure the outstanding budgetary obligations at December 31, 2018 in the case of legal entities, with the exception of public institutions and administrative-territorial units, which have debts in an amount greater than or equal to one million lei.
At this level, the granting of facilities consists of:
- rescheduling the main budgetary obligations, as well as delaying the payment of accessories and a share of the main obligation;
- converting principal obligations into shares;
- extinguishing the main budgetary obligations by paying for real estate or even cancelling a maximum of 50% of the main budgetary obligations.
The facilities are conditioned by the cumulative fulfilment of the following conditions by the debtor:
- to not meet the conditions to benefit from the payment instalment regulated by art. 168 of the Fiscal Procedure Code;
- to present a restructuring plan and a prudent private creditor test, drawn up by an independent expert;
- to not be in insolvency proceedings;
- to have not been dissolved, according to the legal provisions in force;
- to have all the tax declarations filed, according to the fiscal vector;
- to fulfil the test of the prudent private creditor, within the meaning of this ordinance. The prudent private creditor test represents a stand-alone analysis, based on the assumptions envisaged in the debtor’s restructuring plan, from which the state behaves similar to a sufficiently prudent and diligent private creditor, who would obtain a greater degree of debt recovery in the restructuring variant, compared with both the forced execution version and the opening bankruptcy procedure.
The notification by which the entity announces its intention to benefit from the restructuring of the budgetary obligations is to be submitted to ANAF until 30.09.2019. The request for restructuring can be submitted within 6 months from the entry into force of this ordinance, subject to the sanction of decay.
The restructuring of the budgetary obligations also applies to the main and additional budgetary obligations established by bodies other than the fiscal bodies, as well as for fines of any kind, sent for recovery to the central fiscal bodies after January 1, 2019 until the date of the certificate of fiscal certification.
The payment scheduling of the budgetary obligations can be approved for a period of 7 years, the beneficiary having the possibility to reach 10 years by derogation.
B. Cancellation of interest, penalties and all accessories related to the main outstanding budgetary obligations on December 31, 2018.
The beneficiaries of these facilities are:
- debtors – legal entities, natural persons or entities without legal personality – which have as of December 31, 2018 including outstanding main budgetary obligations administered by the central fiscal body under one million lei;
- debtors – natural persons or entities without legal personality, administrative-territorial units or administrative-territorial subdivisions of Bucharest or public institutions – who have outstanding budgetary obligations on December 31, 2018 of one million lei or greater.
The cancellation of all the accessories related to the main budgetary obligations outstanding at December 31, 2018 may take place under the following conditions:
- all the main budgetary obligations outstanding as of December 31, 2018 inclussively, administered by the central fiscal body, are extinguished by any means provided by law until December 15, 2019;
- all the main budgetary obligations and accessories administered by the central fiscal body with payment terms between January 1, 2019 and December 15, 2019 inclusively are extinguished by any means provided by law, until the date of filing the application for cancellation of accessories;
- the debtor must have filed all the tax declarations, according to the fiscal vector, until the date of the filing of the request for cancellation of the accessories.
The application for cancellation of the accessories is submitted after the conditions have been met, but not later than December 15, 2019.
In the case of the accessories established in addition following the control of the fiscal bodies, the facilities will be applied, if they concern the period up to 31.12.2018.
The cancellation of the accessories also applies in the case of the outstanding budgetary obligations on December 31, 2018, greater than or less than 1 million lei, even if these were established by other bodies than the fiscal bodies. In this case, the request for the cancellation of the accessories is submitted and solved by the institution or public authority that administers the respective budgetary obligations.
Integrum, through its specialists, can offer you advice and support in drawing up the necessary documentation to benefit from tax facilities.