Tax Flash no.8/2020 – The application of rent payment facilities for the state of emergency period

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Law 62/2020 on the application of rent payment facilities for the emergency period was published in the Official Gazette 425/2020

  • Economic operators, practitioners of the liberal professions and legal entities whose activity has been discontinued or whose incomes or revenues have decreased by at least 15% in March 2020 compared to the average of the last calendar year, in the period of application of the state of emergency, as well as individuals directly or indirectly affected during the period of application of the state of emergency, may postpone on request, without payment of interest and penalties, the payment of rent for the use of real estate registered as headquarters, workplaces or residences during the state of emergency and one month after its completion.
  • The payment of rents to landlords for these categories of tenants shall be made by the competent territorial tax authority, on behalf of the landlords, at the request of the tenants under certain conditions. Tenants will pay subsequently to the tax authority.
  • Individual taxpayers who during 2020 reduce the price for the use of the real estate, established in cash and/or in-kind, according to the contract concluded between the parties, by at least 30% compared to the price for the use of the real estate for February 2020 are exempt from rental/sublease or usufruct income tax.
  • Revenues from the transfer of the use of real estate obtained on the basis of lease / sublease or usufruct contracts by taxpayers paying corporate income tax as well as taxpayers paying microenterprise tax are taxable only in proportion of 80% of their value, provided the minimum reduction 20% of the lease, compared to February. This incentive is applicable for the period for which the decrease in the value of the right to use the real estate was negotiated, but not longer than December 31, 2020.

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