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Amendments and completions regarding GD 807/2014 and GD 332/2014

In this issue:
  • Amendments and completions regarding GD 807/2014 for the establishment of state aid schemes having as objective the stimulation of investments with major impact in the economy
  • Amendments and completions regarding GD 332/2014 on the establishment of a state aid scheme to support investments that promote regional development by creating jobs
 

Amendments and completions regarding GD 807/2014 for the establishment of state aid schemes having as objective the stimulation of investments with major impact in the economy

Out of the most important amendments, we mention the following:

  • The deadline for issuing financing agreements is extended until 31 December 2023.
  • The deadline for the payment of state aid until 2028 (2015-2028) is extended based on the financing agreements issued, within the annual budget allocated to the scheme.
  • The provision regarding the maximum value of the expenses that can be considered eligible related to the realization of the constructions according to which it cannot exceed the cost standard, is repealed.
  • The provision regarding the documentation attached to the application which proves that the investment would not be profitable for the company in the respective region in the absence of state aid is eliminated. Thus, the only condition that must be met in order for the state aid to be considered to have an incentive effect is to submit a written request for State aid to the Ministry of Public Finance before starting the investment.
  • Two new provisions are introduced according to which:
        - The applications for financing agreement under analysis at the date of entry into force of this decision shall be subject, until settlement, to the provisions applicable before the entry into force of this decision, with some exceptions.
        - The requests for payment of the state aid under analysis at the date of entry into force of this decision will be subject, until settlement, to the provisions applicable before the entry into force of this decision.
  • At the request of the company, the minimum mandatory maintenance period (i.e. 5 years) can be extended by up to a maximum of 2 years, established after the analysis and approval by the Ministry of Public Finance of the recovery plan.
  • The provisions referring the forms are eliminated, as they are introduced in the Applicant's Guide / Payment Guide, as the case may be, that are to be approved by order of the Minister.
  • To support economic agents in the context of COVID-19, the deadline for starting the investment is extended from 4 months to 6 months.
  • The possibility of paying the state aid after the date provided in the financing agreement (until 2028) is introduced.
  • The references to the forms are eliminated and the possibility of submitting them online is introduced.
  • The article stipulating that submission of payment requests must be made until September 30 is repealed.
 

Amendments and completions regarding GD 332/2014 establishing a state aid scheme to support investments that promote regional development by creating jobs

Out of the most important amendments, we mention the following:

  • Similar to the amendments to GD 807/2014, the deadline for issuing financing agreements is extended until 31 December 2023, respectively, the deadline for the payment of state aid is extended until 2028.
  • The possibility to create jobs after submitting the application for financing agreement and after starting the investment is introduced.
  • The payment mechanism is simplified by waiving the verification of the condition regarding the existence of employment relationships prior to the registration of the application for financing agreement.
  • The gross intensity of the state aid that an company can benefit from, within the scheme, in the period 2021-2023, in relation to the eligible expenses is established by the regional maps approved by the EC for this period.
  • Similar to the amendments to GD 807/2014, the forms are introduced in the Applicant's Guide and are approved by order of the Minister.
  • It introduces the possibility to start the investment project in a shorter time, more precisely after submitting the application for financing agreement.
  • The minimum number of jobs is increased to 100. If a job has not been occupied for a period longer than 6 consecutive months, it is considered that the job has not been maintained.
  • The creation of jobs in several locations is allowed.
  • It simplifies the submission of documents to be submitted to the Ministry of Public Finance (in addition, the online submission of documents is considered).
  • The restriction of the realization of the job creation plan for each year is eliminated, so they must be created according to the calendar.
  • The company has the obligation to maintain the investment for 5 years from the date of its completion.
  • The company has to make the contribution to the regional development at least at the level of the paid state aid.
 

Feel free to reach out to us should you like to receive detailed information on the provisions brought by this normative act as well as its applicability to your specific case.

 

For more information or details on the above you may consult the site http://e-consultare.gov.ro/, or you could contact us directly in order to clarify any other questions.

 
Prepared by:
Andreea Cosmănescu – Tax Senior Manager, Direct Tax
Teona Braia – Tax Senior Consultant, Direct Tax
 
For additional information, please contact:
Alex Milcev – Partner, Tax & Law Leader Romania
Mihaela Mitroi – Partner, Southeastern Europe Tax and Law Leader
 
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