Romanian companies owing money to the state budget will be given a six-month period to restructure their dues over a period of up to seven years, according to a draft ordinance inked by the Ministry of Finance and leaked to Profit.ro.

The debt restructuring, at the request of the taxpayer, is an alternative to the current mechanism that allows restructuring over a shorter period of time. The mechanism will be open to both private and public entities.

The Government will take this step “to save from insolvency taxpayers who suffer from structural problems”.

Companies willing to enter the restructuring programme will have to notify the relevant tax authority and hire an expert for drafting a restructuring plan much like those drafted for insolvent companies. The expert hired will suggest recovery measures and a schedule for the payment of the dues to budget.

Meanwhile, the tax administration agency ANAF erased all the fiscal debts lower than RON 40 (EUR 8.6) registered by taxpayers on January 1, 2019, according to local Avocatnet.ro. The tax agency typically erases all debts under a certain low threshold at the beginning of the year.

editor@romania-insider.com

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