RO Govt. extends restructuring facility for companies with overdue taxes

Romanian companies with overdue payments to the state budget as of March 31 will be allowed to restructure their debt, avoid paying interest and penalties, and even get a bonus of up to 50% in exchange for cash front payment of up to 15%.

On May 27, the Government amended the restructuring facility for companies with overdue taxes, allowing them to restructure overdue debts as of March 31 (compared to December 31, previously),Profit.ro announced quoting finance minister Florin Citu.

The calendar for the facility has been delayed amid the lockdown. Earlier this year, companies with debts of under RON 1 mln (EUR 0.2 mln) were also included in the program.

The debt restructuring facility allows companies to propose a repayment calendar for up to seven years, and the Government waives the interest and penalties accumulated as of March 31.

Companies willing to apply for this facility should notify the authorities by July 31 and should come up with the proposed repayment calendar by October 30.

As of May 18, companies had informed the authorities about their intention of restructuring a total debt of RON 4.5 billion (EUR 930 million) that generated RON 2.4 bln (EUR 475 mln) of interest and penalties as of December 31, 2019.

Under a separate facility (tax amnesty), taxpayers that pay their overdue taxes to budget by December 15 this year, are waived the interest and penalties accumulated as of March 31.

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