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Indemnities for professionals and the postponement of forced execution in the context of COVID-19

In this issue:
  • Emergency Ordinance no. 53/2020
  • Emergency Ordinance no. 49/2020
 

Emergency Ordinance no. 53/2020

 

Emergency Ordinance no. 53/2020 amending and completing some normative acts on social protection measures caused by the spread of SARS-CoV-2 coronavirus, published in the Official Gazette no. 325 of 21 April 2020

 

Indemnities for professionals: new beneficiaries and reporting rules

The Ordinance introduces a new category of beneficiaries of the indemnity of 75% of the average gross national salary during the emergency state, respectively, lawyers with reduced activity, if they obtain revenues cut down by at least 25% compared to the average monthly revenues in 2019, but not exceeding the average gross national salary for the year 2020 (i.e., RON 5,429).

Self-employed individuals, lawyers, sportsmen, individuals earning income exclusively from copyright and related rights, other professionals, benefiting of indemnities, declare the related tax liabilities through the annual tax return for income tax and social charges due by individuals and pay them within the legal deadline (i.e., 15 March inclusive of the following year the income was obtained). This rule does not apply to individuals with work conventions, for whom the tax liabilities are withheld at source by the income payer.

The Ordinance establishes the due date for requesting the indemnity for March 2020 for lawyers and extends the one for self-employed individuals and other professionals.

The Ordinance introduces also the possibility for pensioners and persons with disabilities to benefit, as the case may be, of the rights provided by the law during the emergency state for technical unemployment, indemnities for lawyers, sportsmen with suspended contracts, copyrights.

Also, the Ordinance establishes that the period for which unemployment indemnities are granted by the State to unemployed persons will be extended until the emergency state is over, to provide a minimum economic protection to this category of persons whom would have been, in normal conditions, at the end of their unemployment period.

 

Postponement of forced execution

The indemnities for technical unemployment and those for other beneficiaries received from the state budget are not subject to forced execution by garnishment, during the period they are granted, regardless of the budget from which they are paid, during the emergency state and 60 days as from its termination.

 

Emergency Ordinance no. 49/2020

Emergency Ordinance no. 49/2020 amending and completing the Government Emergency Ordinance no. 158/2005 on leave and health insurance allowances, as well as for regulating certain social protection measures, published in the Official Gazette no. 319 of 16 April 2020

The Ordinance brings clarifications on medical leave and allowances for quarantine received by insured individuals in case of suspicion of infection with COVID-19, including provisions about medical certificates which are issued and the gross allowance which is granted.

Also, it is established that medical leave certificates will be issued by the family doctor after the last day of quarantine, but no later than 30 days since emergency state is over.

In addition, the monthly gross value of the quarantine indemnity is settled to an equivalent of 75% of the standard computation base, as per the law.

The allowances related to medical leave certificates granted during the emergency state can be requested, based on supporting documents, within 180 days as from the end of the emergency state period.

 
Prepared by:
Dan Răuț – Tax Manager, People Advisory Services
 
For additional information, please contact:
Alex Milcev – Partner, Tax & Law Leader Romania
 
Ernst & Young SRL
Bucharest Tower Center Building,
22nd Floor, 15-17 Ion Mihalache Blvd.,
Sector 1, 011171, Bucharest, Romania
Tel: (40-21) 402 4000, Fax: (40-21) 310 7124
Email: office@ro.ey.com
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