Tax concessions

Last reviewed 21 Aug 2023

Direct

Additional tax deduction for research and development: 50% of eligible expenses (certain conditions and criteria apply).
Accelerated depreciation of plant and equipment used in R&D activities.

Indirect

Income tax concessions, e.g.

Income tax exemptions applicable for some categories of taxpayers e.g. disabled persons (e.g. for salary income, income from intellectual property, pensions), employees working in the IT sector, R&D sector, constructions and agriculture; certain requirements apply for granting the exemption.

Taxable income is generally subject to an income tax of 10% (including investment income, interest income and income from cryptocurrency).

Tax credits

Family Bonus Plan:

N/A

Chilren Surplus:

N/A

Sole earner deduction pa.: 

N/A

Single parent deduction pa.:

 N/A

Child deduction:

An additional monthly deduction amounting to RON 100 is granted for each child enrolled in an educational system, regardless of the taxpayer's monthly gross salary. The additional deduction may be claimed only by one parent.

Alimony deduction:

N/A

If in employment / pension income p.a.:

An additional deduction of 15% of the minimum gross salary (RON 3,300, i.e. EUR 660 per month) is available for employees younger than 26, who earn a salary of max. RON 5,300.

Allowances and exemptions

Profit allowance:

Sponsorship allowance amounting to the minimum between 0.75% turnover and 20% corporate income tax in case of corporate income tax payers, respectively 20% of the tax for companies subject to microenterprise tax; certain conditions are applicable.

Allowance for deducting the cost of cash registers from the microenterprise tax due by a taxpayer.

Corporate income tax exemption has been introduced for taxpayers that exclusively perform innovation, research and development activities, 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; currently no application norms for the facility are available.

Taxpayers subject to corporate income tax and microenterprise tax benefit from certain tax reductions in case the equity is positive and increases as compared to prior years.

Investment allowance:

Exemption from corporate income tax for profit reinvested in new plant, equipment, acquisition of assets for technology improvements, 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

Government subsidies

Government subsidies available for home loans granted to individuals
Certain amounts related to the employees medical leave are supported by the National Fund of Health Insurance, e.g. sick leave days exceeding 5 days, pregnancy risk medical leave, medical leave for taking care of the sick child
Unemployment subsidy and trainings granted by the National / Regional Employment Agency
Subsidies for the renewal of national car park and acquisition of electric cars
Subsidies for utilities (e.g. gas, electricity) provided towards individuals
Agricultural subsidies