Direct
none
Indirect
Income tax concessions e.g. certain gains on disposal.
Allowances and deductions:
Personal allowances: from RON 510 (approx. EUR 105) to RON 1,310 (approx. EUR 27065), depen- ding on income and the number of dependents.
Private pension insurance: maximum allowable premium EUR 400 / per year for each employee.
Health insurance premiums and medical services provided on a subscription basis: maximum allowable premium EUR 400 / per year for each employee.
Grants
EU Funds
Romania can receive almost Euro 80 billion EU-funds in the period 2021-2027. There are various programs available for Romania, the most significant being:
- Recovery and Resilience Plan
- Regional Operational Programme
- Program for Rural Development
- Operational Programme "Transport"
- Operational Programme “Sustainable Development”
- Operational Programme “Smart Growth, Digitization and Financial Instruments”
- Operational Programme “Education and Employment”
Romania can also benefit from Norvegian and EEA grants for projects relatad to innovation and green technologies.
Additional tax concessions
- For R&D activities: additional allowances equivalent to 50 % of deductible R&D expenses (under certain conditions); accelerated depre- ciation of plant and equipment used in R&D activities. The additional allowance for R&D activities is not recalculated if the objectives of the R&D project are not met.
- Corporate income tax exemption has been introduced for taxpayers that exclusively perform innovation, research and development activities, as defined by Government Ordinance no. 57/2002, as well as closely related activities. This exemption from corporate income tax is applicable during the first 10 years of activity of newly established companies subject to state aid regulations. For already incorporated taxpayers, the exemption applies for 10 years as from 6 January 2017.
- Exemption from corporate income tax for profit reinvested in new plant, equipment, computers and peripheral equipment, software and software rights used for business purposes (acquired under straightforward sale or under financial leasing agreements). Taxpayers benefitting from this exemption cannot apply the accelerated tax depreciation regime for the equipment in question. Starting January 2017, the application of the tax exemption on reinvested profit has been extended for an indefinite period.
- Corporate tax exemption relating to reinvested profit is granted within the limit of the amount of profit tax calculated cumulatively from the beginning of the fiscal year. This incentive does not apply in the case of purchases of cash registers for which a tax credit has been granted.
- Taxpayers subject to corporate tax, micro-enterprise tax or the tax on specific activities (HoReCa) benefit from certain tax reductions related to the increase of share capital.
