FinMin announced tax amnesty in October


Finance Minister Eugen Teodorovici has announced that the tax amnesty would be renamed financial restructuring, while its mechanism will be concluded in October.

Let’s call it a financial restructuring, not amnesty, which, next to insolvency, is providing benefits to the business environment”, minister Teodorovici told Antena 3 private broadcaster.

He added the restructuring will be applied both to private companies and also to the state companies, as well as to physical person.

For the moment we are working on the mechanism to encompass all three categories- with debts, without debts and natural person. The mechanism must be enforced and discussed in the coalition in October”, the minister pointed out.

Teodorovici mentioned the restructuring must be adopted by primary law, such an emergency ordinance.

A first category of the companies targeted by the new rules are the state and private companies that are not close to insolvency yet and whose debts can lead the firm to bankruptcy.

We are considering the penalty and interest rate write-off so that the company can pay its debts to the state, so that it can operate and grow,” the FinMin argued.

I don’t want the state to do the financial analysis on companies, but a bank on the market, maybe Eximbank, CEC or other bank, but they should very clearly say: You, as a company, in order to be economically operational again, need an installment of the main sum to pay to the state- of seven, 10 or 15 years,” the minister explained, adding the SMEs will benefit of this mechanism.

The second category of companies to benefit of the financial restructuring is the ones who have all payments current. They will be allowed to pay some taxes later than the scheduled one.

The state will have to assume this cash shortage, for that period of time. But it is an effort I have to assume for it is not right to write off debts for some companies and to not do it for the bona fide ones,” Teodorovici stated.

Natural person have to pay taxes for pensions and health insurances, as well as the income tax by March 2019, for the revenues related to 2018. If they pay earlier, by December 2018, they have a 5% discount.

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