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Concessions and Incentives

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Since the accession  to the European Union, Romania has been having the financial aid to sustain a balanced regional development, the modernization of transport and environment infrastructure, rural development, to create new employment opportunities, to promote social policies for increasing the living standard.
 
Along with the European Structural Funds, there are a series of national aids that potential investors can benefit from:
Incentives to support investments made in industrial parks, in most areas of activity, with the main measures:

  1. Exemption from fees for changing the destination or sealing land in the industrial park and reduced taxes granted by the local public administration for real estate and land use provided in the industrial park;
  2. Deduction from taxable income of a 20% share of the value of the investments made in the industrial park, and if there is  registred fiscal loss, it is recovered from the taxable income gained in the next 5 years;
  3. Delaying the payment of VAT for materials and equipment needed for the utilities system within the park during the period of investment implementation, untill puting the industrial park into uperation, and postponing the right to deduct the VAT untill the same date  for the companies that have made the investment.

 
Facilities granted for business established in the Free Zones:

  1. Land and  comercial spaces offered in concession for a period of maximum 49 years;
  2. The simplification of tax procedures, exemption from the payment of customs fees and taxes related to vehicles, cargo and goods that are inserted and removed from the free zone;
  3. The posibility to change the origin of goods, sell them outside the free zone regime and goods transit to other free zones, as they are exempt from customs duties;
  4. For  the investments made in the free zone, companies can receive aid for regional development of 50% of the eligible costs of investments made by big companies and 65% of eligible costs of investments made by small and medium companies.

 
Facilities granted for business established in disadvantaged areas:

  1. Exemption from fees for changing the destination or sealing  the investment land;
  2. Exemption from customs duties and VAT on machinery, equipment, vehicles and other depreciable assets which are imported in order to make the investments in the area and duty drawback on raw materials,  replacement parts and / or imported components necessary to the production in the area;
  3. Exemption from profit tax during the existence of the disadvantaged area;
  4. Special government grant funds for stimulating the export of finished products and / or industrial services, for guaranteeing foreign loans and for financing investment projects of the companies by co-participation of the state to the share capital.

 
Facilities for direct investment with significant impact on the economy:

  1. Exemption from customs duties aplied to never used and imported technological equipment, installations, machinery, measuring and controling devices, automation and software products, needed for the investment;
  2.   New investments  have a deduction of 20% of their value, which is calculated for the month when the investment is made, only in terms of fiscality. If tax loss is registred, the deduction would be  recovered  in the next five years, from  the taxable profit that is realized.
  3. The investments benefit from using the accelerated depreciation;

 
Facilities for small companies:

  1. The tax on income  of 3% quarterly is applied, if the small company:
    1. has income, other than from banking activities, insurance and reinsurance, capital markets, gambling, consulting and management;
    2. has from 1 to 9 (including) employees;
    3. achieved revenues  that do not exceed the equivalent in RON of 100,000 €;
  2. Lowering the tax for the investment in depreciable assets derived from profit (manufacturing and services companies) ;

 
Facilities for small and medium enterprises (SMEs):

  1. Easy access to financing through the National Guarantee Credit Fund for SMEs;
  2. Benefit from discounts of 50%, if matching the criteria relating to the turnover, the guarantee for participation and performance bond, as required in the public auctions of goods, works and services;
  3. Prior access to renting, concessioning or leasing available assets of the companies with majority state capital, reducing or removing the safeguards required and the methods of prepayment for the consumption of utilities and public services, free technical support to facilitate the access to specialized training programs in public auctions, managed by the National Agency for Small and Medium Enterprises;

 
Financial support of the following categories of companies, through state aid schemes:

  1. initial investment of 5-10 million € and creating at least 50 new jobs;
  2. initial investment of 10-20 million € and creating at least 100 new jobs;
  3. initial investment of 20-30 million € and creating at least 200 new jobs;
  4. initial investment exceeding 30 million € and creating at least 300 new jobs.


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Last Updated on Thursday, 05 September 2013 21:16

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