URG. ORDINANCE 67 19/05/1999
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The Expeditious Ordinance of the Government of Romania No. 67/19 May 1999on some measures for the development of the economic activity*)ISSUED BY: GOVERNMENTPUBLISHED IN: OFFICIAL GAZETTE OF ROMANIA, Part I, No. 231, May 24, 1999. *) The Expeditious Ordinance of the Government of Romania No. 67/1999 on some measures for the development of the economic activity was published in the "Monitorul Oficial" (Official Gazette of Romania), Part I, No. 231 of 24 May 1999.Article 1
By the provisions under the present expeditious ordinance shall benefit investments with a major impact on the economic activity, except those from the banking sector, services and trade, which are made in trading companies by investors - natural or juristic, Romanian or foreign persons - and as a result of which one of these holds the controlling interests.Article 2
In the sense of the present expeditious ordinance the following terms and phrases shall have the following significations:1. investment with major impact on economic activities - participation in the settlement of a trading company or in the increase of the share capital of an existing trading company, in any of the legal forms provided by the law, as well as the acquisition of shares of a trading company in which the state or an authority of the local public administration is the main shareholder, provided that one of the following criteria is fulfilled:a) the value of the investment achieved, distributed over a period of two years maximum, shall be of at least USD 50 million or the equivalent of this amount of money expressed in any other freely convertible currency or in Romanian currency (lei). In the case of trading companies which have formed the object of a privatization procedure, the total investment in the first year, the acquisition price of the shares inclusive, shall be of USD 50 million minimum or the equivalent of this amount of money expressed in any other freely convertible currency or in Romanian currency (lei);b) the value of the investment achieved, distributed over a period of three years minimum, shall be of at least USD 50 million or the equivalent of this amount of money expressed in any other freely convertible currency or in Romanian currency, for trading companies set up in zones, other than the unfavoured ones, in which the average unemployment rate recorded in the last two years is over ten per cent, and as a result of the investment at least seven hundred new jobs shall be created in the same period;c) the value of the investment achieved, distributed over a period of three years maximum, shall be of at least USD 60 million or the equivalent of this amount of money expressed in any other freely convertible currency or in Romanian currency (lei), and shall be achieved in the field of dwellinghouse building.2. subcontracting companies - trading companies which conclude subcontracting contracts over a duration of five years minimum with a trading company in which an investment has been achieved with a major impact on the economic activity.Article 3
Trading companies, Romanian juristic persons, in which investments shall be made with a major impact on the economic activity, such as these are defined under art. 2 point 1, may benefit by the following facilities:a) exemption from the payment of the customs duties and of the value added tax on the import of goods, as well as exemption from payment of value added tax on goods acquired from the home market, which are constituted into amortizable assets, defined according to the Law. No. 15/1994, with subsequent modifications, as well as of the components leading to their creation, representing a contribution in kind to the share capital of a trading company, or acquired from the contribution in cash to the share capital of the respective trading company;b) exemption from the payment of the customs duties and of the value added tax on import, as well as exemption from the payment of the value added tax on acquisitions from the home market of technological equipment, machinery and tools, constituting amortizable assets, according to the Law No. 15/1994, with subsequent modifications, including the trading denomination and the codes from Romania's Import Customs Tariff, corresponding to the goods which observe the abovementioned provisions, shall be adopted by decision of the Government, at the proposal of the Romanian Development Agency, on the basis of the notifications from the Ministry of Industry and Trade, and the Ministry of Finance;c) exemption from the payment of the customs duties and of the value added tax on imports, as well as exemption from payment of the value added tax on acquisitions from the home market of raw materials, expendable materials, spare parts and components, over a period of two years after the date of the beginning of activity or commissioning of the objective, as the case may be, on condition that the beginning of activity or commissioning of the objective shall be made within three years maximum after the date of registering of the trading company with the register of companies. For trading companies which have formed the object of a privatization procedure, the two year period shall begin after the date established by decision of the Government;d) exemption from the payment of the income tax for trading companies in which investments are made with a major impact on economic activity in the privatization process, over a period of five years beginning with the first financial year in which profit is obtained, provided that this be achieved within three years maximum after the date established by decision of the Government;e) exemption from the payment of the income tax, for trading companies in which investments are made with a major impact on the economic activity, and which are constituted after the date of coming into force of the present expeditious ordinance, over a period of ten years, beginning with the first financial year in which profit is obtained, provided that this be achieved within three years maximum after the date of registering of the trading company with the register of companies;f) exemption from the payment of the tax for the income reinvested in the modernization technologies and extension of the trading company's activity, as well as in the acquisition of assets, capital shares or shares offered by the State Property Fund;g) granting of a delay of 65 days against the term provided by art. 6 under the Law No. 118/1996 on the constitution and use of the Special Fund of Public Roads, republished, for the transfer of the five per cent quota on the value of the motor vehicles produced and delivered on the home market, over a period of five years since the date established by decision of the Government;h) granting of a delay of one to three years with the payment of the value added tax for activities deployed within the trading company;i) exemption from the payment of the value added tax over a period of up to three years in case of investments made in the field of dwelling-house building;j) granting, free of charge, of the right of property or of user on lands and buildings existing in the private property of the state for dwelling-house building, to Romanian juristic persons.Article 4
Subcontracting companies may benefit by the facilities referring to the granting of a delay of three years maximum with the payment of the value added tax, if they achieve at least fifty per cent of their turnover within the framework of the respective agreement.Article 5
(1) The Romanian Development Agency, on the basis of the governing programme and of the priority objectives established for each period, together with the competent ministries, specialized institutions subordinated to the Government, the local public administration authorities, as the case may be, shall identify and propose for approval to the Government investment projects and eligible investors according to the provisions of the present expeditious ordinance.(2) The Government, on the basis of these proposals, shall authorize the Romanian Development Agency for the beginning, deployment, or co-ordination of negotiations, as the case may be, with eligible investors according to the provisions of the present expeditious ordinance.(3) With a view to accomplishing the mandate received from the Government, the Romanian Development Agency shall collaborate with the competent ministries, with the State Property Fund, with other authorities of the local and central public administration, and shall receive their support.Article 6
On the basis of negotiations carried on according to the provisions of the mandate, the Romanian Development Agency together with the competent ministries shall propose to the Government for approval a draft decision including the achievement conditions of the investment and the facilities that shall be granted to it.Article 7
(1) Investments achieved under the effect of the Expeditious Government Ordinance No. 92/1997 on the stimulation of direct investments, approved and modified by the Law No. 241/1998, may benefit by the facilities provided under art. 3 of the present expeditious ordinance if they increase the share capital to USD 50 million over a period of one year maximum since the date of coming into force of the present expeditious ordinance, or if they fulfil one of the criteria for granting the facilities at that date.(2) Investments achieved on the basis of the Law No. 35/1991, republished, of the Law No. 71/1994, and of the Expeditious Government Ordinance No. 31/1997 may benefit by the provisions of the present expeditious ordinance to the extent in which they fulfil one of the criteria of eligibility provided under art. 2, over a period of one year maximum since its coming into force, or fulfil one of the criteria for granting the facilities at that date, and have no longer benefitted by the respective facilities.Article 8
(1) In case the trading company in which were made direct investments with major impact on the economic activity shall be liquidated over a period smaller than double of that for which it benefits by one of the facilities provided under the present expeditious ordinance, it shall be under the obligation to pay the rates and taxes established according to the law for the whole period of operation, to which shall be added interests and delay penalties provided by the law.(2) Rates and taxes due to the state according to para. (1) shall be payed with priority, from the results of the liquidation of the investments or from the rights due to shareholders.Article 9
On the date of coming into force of the present expeditious ordinance there shall be abrogated point 13.1 letter c), 13.2, 15, 23, and 32 under the Methodological Norms for the application of the Expeditious Government Ordinance No. 31/1997 on the system of foreign investments in Romania, approved by the Decision of the Government No. 928/1997, published in "Monitorul Oficial" (Official Gazette of Romania), Part. I, No. 382 of 29 December 1997. -------
