Tax incentives for research and development extended to taxpayers which pay the minimum business turnover tax: GEO no. 115/2024
04 Oct 2024
The takeaway
The Government of Romania has adopted Emergency Ordinance no. 115/2024 (GEO no. 115/2024), introducing a research and development (“R&D”) tax incentive for taxpayers which pay the minimum business turnover tax.
In detail
According to GEO no. 115/2024, taxpayers which apply an additional 50% deduction to the result of their tax calculation can reduce the minimum business turnover tax (“IMCA”) by the amount obtained by applying a 16% rate to the amount representing the additional 50% deduction from the eligible expenses for R&D activities.
This tax incentive applies to the determination of the IMCA for the fiscal year 2024 or the modified fiscal year starting in 2024.
Source: [Emergency Ordinance of the Government no. 115/2024 for amending Law no. 227/2015 Fiscal Code, published in the Official Gazette no. 970, dated 26 September 2024]
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