GEO no. 130/2020: The platform for obtaining grants worth 1 billion euros is active
Starting with 15.09.2020, the profile, user and password creation stage is active, on the link https://granturi.imm.gov.ro, the stage preceding the launch of the three support measures. At this stage, all applicants interested in any of the three support measures will have the opportunity to pre-register the data of legal representatives / proxies, as well as the data of legal entities.
GEO 130/2020 provides for the opening of 3 financing schemes for SMEs, PFA and other economic operators severely affected by the pandemic and aims to support from European non-reimbursable funds, related to the Competitiveness Operational Program 2014 – 2020, in the amount of 1 billion euros, through providing micro-grants, working capital grants and investment grants. The grants will provide small and medium-sized enterprises with the necessary liquidity to continue working, keep jobs and encourage future investment. The actual date of launch of each of the three measures of the State Aid Scheme is to be announced shortly.
Fiscal measures to stimulate the maintenance / increase of equity capital
Emergency Ordinance no. 153 of September 3, 2020 for the establishment of fiscal measures to stimulate the maintenance / increase of equity capital, as well as for the completion of some normative acts was published in the Official Gazette of Romania no. 817 from 04.09.2020.
To stimulate the provision of additional financial resources to taxpayers paying profit tax, income tax on micro-enterprises or activity-specific tax, by reducing the tax burden, given the need to stimulate and develop Romanian capital and the competitiveness of economic operators for the transition to a sustainable economy , it is proposed to grant a reduction when determining the profit tax, the income tax of micro-enterprises and the tax specific to certain activities depending on the maintenance / increase of equity.
The ordinance introduces the possibility of applying reductions between 2% and 15% of the amount of corporate income tax, income tax of micro-enterprises or specific tax. The discount rate varies depending on the year-on-year increase in equity. If two or three of the reductions provided for in the Ordinance are applicable, in order to determine the amount of the reduction, the corresponding percentages are added together and the resulting value is applied to the tax.
Electric Up financing program
Emergency Ordinance no. 159/2020 on the financing of small and medium enterprises and the HORECA field for the installation of photovoltaic panel systems for the production of electricity with an installed power between 27 kWp and 100 kWp required for own consumption and delivery of surplus in the National Energy System, as well as substations 22 kW recharging for plug-in hybrid electric and electric vehicles, through the financing program „ELECTRIC UP” was published in the Official Gazette no. 824 of September 8, 2020.
Through the „ELECTRIC UP” financing program, a de minimis aid is granted to the beneficiaries of small and medium enterprises within the meaning of Law no. 346/2004 on stimulating the establishment and development of small and medium enterprises, as well as economic operators benefiting from HORECA, according to the Classification of activities in the national economy – NACE, in maximum amount of 100,000 euro/beneficiary, representing a financial support of up to 100% of the amount of eligible expenses. The investment project subject to the grant application must contain a minimum installed capacity of 27 kWp and a minimum of 22 kW recharging station for plug-in hybrid electric and electric vehicles.
Financial Support under SURE: Romania – €4.1 billion
The Council of the EU on 25th of September 2020 approved €87.4 billion of financial support to 16 member states in the form of EU loans under SURE – a temporary EU instrument to mitigate unemployment risks during the COVID-19 crisis.
The support will help the member states finance the severe increase in public expenditure incurred as of 1 February 2020 as a result of the use of national short-time work schemes and similar measures, including for self-employed persons, and some health-related measures in response to the pandemic. SURE is one of the three safety nets, worth up to €540 billion, that were agreed by the Eurogroup on 9 April 2020 and subsequently endorsed by the EU leaders to protect workers, businesses and sovereigns.
The financial support under SURE granted to Romania is worth €4.1 billion. SURE loans are backed by the EU budget and guarantees provided by member states according to their share in the EU’s GNI, for a total amount of €25 billion.