Fiscal facilities “repealed” by the anticrisis plan

The New Executive Body in Bucharest adopted on the 30rd of  December 2008 a series of measures agains the crisis effects, cancelling some of the measures against the crisis just promoted by the old Government.

One of the main provisions agains the crisis promoted by the new Government is the elimination of the new tax incentives, specifically the 5% bonus to prepay taxes, paid for fast payment of obligations to the state budget. Another measure of fiscal loosening eliminated is the one relative to the bonus received by the employers who create new jobs.

The New Executive Body in Bucharest adopted on the 30rd of  December 2008 a series of measures agains the crisis effects, cancelling some of the measures against the crisis just promoted by the old Government.

One of the main provisions agains the crisis promoted by the new Government is the elimination of the new tax incentives, specifically the 5% bonus to prepay taxes, paid for fast payment of obligations to the state budget. Another measure of fiscal loosening eliminated is the one relative to the bonus received by the employers who create new jobs.

Article I of the Emergency Ordinance no. 192 from 25 November 2008 concerning the approval of some fiscal loosening measures in order to grow the economy and the number of jobs, provide that: “Paying with at least 10 days before the payment deadline set under art. 111 of all the tax liability due to budgets managed by the National Tax Administration, taxpayers will receive a bonus of 5% of the obligations due”.

Article III of the same ordinance settled the situation of the employers who were creating new jobs. This ordinance was stipulating that: “Employers who create new jobs exclusively for the unemployed workers that are registered in the agencies for employment, and employ them for a period of at least 3 consecutive months from the date registration records of these agencies, will receive from the budget of the unemployment insurance an amount of money equal to 8 times the value of social indicator reference operated on the employment start date, with the obligation to maintain relationships of work or service at least for 3 years.” In other words, we are talking about a bonification of 1,000 Euro for each new job created by an employee offered to an unemployed worker.

Here is that, in less than a month after its publication in the Official Gazette, these provisions, from our point of view beneficial to the economic environment, are repealed by Article 14 of the Emergency Ordinance no. 226 of 30 December 2008 which expressly provides that: “On the operation entry of this emergency ordinance shall be repealed Emergency Ordinance no. 192/2008 regarding the approval of measures to relax fiscal growth and employment, published in the Official Gazette, Part I, no. 815 of 4 December 2008”.