Romanian Govt. comes up with details on planned fiscal amnesty for companies

The fiscal amnesty proposed by the Finance Ministry targets 2,773 companies, of which 2,663 are private companies, 30 are state-owned companies, and 28 other companies are mixed-stock (state + private). Their total debts to the state exceed RON 24 billion (EUR 5 billion), according to the Finance Ministry's calculations quoted by Profit.ro.

The Government considers two scenarios to reduce the arrears, depending on the amount of outstanding budgetary obligations at December 31, 2018. Small debtors, with overdue payments to the state of up to RON 1 million (EUR 210,000) will be waived the interest and penalties accumulated (therefore will have the option of paying only the principal). Meanwhile, large debtors will have to restructure their debt to the state out of which up to 50% could be cut.

The companies undergoing the second option will be cut 30%-40%-50% of their debts in exchange for adhering to a firm repayment schedule. If they breach these terms, the allowance (reduction of principal) will be canceled.

Companies in insolvency or judicial reorganization will not benefit from this fiscal amnesty.

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