In this issue:
- Law on the application of certain rent payment facilities for the period related to the state of emergency
Law no. 62 of 20 May 2020 on the application of certain rent payment facilities for the period related to the state of emergency (Law 62/2020), published in the Official Gazette no. 425 of 21 May 2020, entered into force on 24 May 2020.
The purpose of the law
Law 62/2020 aims to support certain categories of lessees that, in the context of the economic difficulties caused by the Covid-19 pandemic, can no longer pay the rent.
These lessees may request that the rent be deferred, without being obliged to pay interest and penalties, in such case the payment of the rent will be made by the competent territorial tax authority in the bank account of the lessors, at the lessees’ request.
The lessees that make such requests to the tax authorities and that benefit from the provisions of Law 62/2020 must reimburse these amounts to the competent territorial tax authority, in equal installments, after the period for which the payment has been deferred, by 31 December 2020, otherwise they will be subject to enforcement proceedings.
The beneficiaries of the facilities
Law 62/2020 provides that the payment of rent for the use of buildings registered as offices, working point or homes may be postponed at the request of the following categories of lessees:
(i) economic operators, independent professionals, legal entities under private law, whose activity has been interrupted or whose incomes or revenues have decreased by at least 15% in March 2020 compared to the average of the last calendar year during the state of emergency period;
(ii) individuals who were economically affected, directly or indirectly, during the state of emergency period.
The conditions under which the payment of rents may be deferred
To benefit from the postponement of rent payment, these lessees must submit to the competent territorial tax authority a request accompanied by the following documents:
(i) the lease agreement between the lessor and the lessee;
(ii) an addendum to the lease agreement which must include, among others, the parties’ agreement to defer the payment of the rent, the duration of the period of postponement of the rent payment, the value of the rent for that period of deferral;
(iii) any type of document proving the lessee’s inability to pay the rent within the period specified in the addendum.
The request may also be submitted by e-mail to an e-mail address that will be indicated on the website of each territorial tax authority.
In order to benefit from the postponement of rent payment, the following conditions must be met cumulatively:
(i) the monthly rent specified in the addendum concluded between the lessor and the lessee is lower than or at most equal to the rent of February 2020;
(ii) the value of the monthly rent provided by the addendum concluded between the parties, for each location, is of maximum RON 10,000 for the economic operators and of maximum RON 2,000 for individuals.
Applicability
The facilities regulated by Law 62/2020 apply for the entire period of the state of emergency, as well as for the month following the month in which the state of emergency ceased.
The norms for the implementation of Law 62/2020 are to be issued within 15 days from the date of its publication.
For more information, please contact Radu și Asociații SPRL team.
Prepared by:
Eduard Florea – Associate, Radu și Asociații SPRL
Alexandra Siminiceanu – Senior Associate, Radu și Asociații SPRL
For additional information, please contact:
Radu Diaconu - Associate Partner