Through the EOG no. 85/17.07.2022, the Government extended the deadline by which companies can submit applications to the tax authorities for tax debt relief, under the provisions of OG no. 6/2019, until 31.07.2023. Tax liabilities outstanding as of December 31, 2021 were also included. To qualify for these measures, debtors have to notify the competent tax authority of their debt restructuring intention no later than 31.01.2023. Non-compliance with this time-limit results in forfeiture of the right.

Necessary steps

Stage 1: Notify the competent tax authority of the company’s debt restructuring intention, according to O.G. no. 6/2019, no later than 31.01.2023. No-compliance with this time-limit results in forfeiture of the right 

Stage 2: The competent tax authority issues the tax registration certificate which includes the outstanding budget obligations that will be the object of the restructuring.  

Stage 3: Preparation of the restructuring plan and the prudent private creditor test.

The restructuring plan must be prepared by an independent expert, who will also ensure periodic monitoring and reporting throughout the implementation.

To develop the prudent private creditor test, it is necessary to hire an expert valuator (it can be the same independent expert if he has the necessary skills and certifications), who will valuate the company’s assets. The valuation is necessary so that the independent expert can include in the test of the prudent private creditor a simulation of the hypothesis of the total liquidation of the company’s assets within the bankruptcy procedure, as well as the hypothesis of enforced execution.

Stage 4: Submission of the restructuring plan and the prudent private creditor test to the competent tax authority

The restructuring request can be submitted until July 31, 2023, under penalty of forfeiture.

Considering the deadline, it is indicated that the independent expert should complete and communicate the restructuring plan and the prudent private creditor test enough time before the deadline, in order to be able to make any changes, but also to be able to convene the company’s AGM in order to approve the restructuring plan.