Research and development 50% tax rebate
Research and Development 50% discount: With Decree No. 256 of March 10, 2015, the government expanded the deductibility of costs pertaining to Research and Development by increasing the deductibility percentage from 20% to 50%. Simply put, R&D allows for a 50 percent tax rebate.
The measure was adopted in order to stimulate economic growth and in fact introduces a 50 percent tax rebate on R&D charges incurred by businesses.
The deductibility measure is intended for taxpayers who:
- carry out Research and Development activities, either through their own means or in collaboration/agreement/association with others;
- carry out R&D activities through an agreement between affiliated companies in order to spread the benefits over all parties involved;
- carry out R&D activities both domestically and in other states of the European Union.
The R&D costs covered by the tax benefit are as follows:
- Depreciation and maintenance costs related to tangible and intangible assets used in the process of Research and Development activity;
- Costs of personnel who participated in R&D activities;
- Other costs: costs of third parties, consumables etc. who participated in R&D;
- directing costs in proportion to the benefits attributable to individual subsidiaries.
Research and Development activities to qualify for the benefit must cumulatively meet the following conditions:
- be included in a project that contains at least the following specifications: established objective, the period of the project, the area of research, the sources of funding, the results achieved (studies, innovative technology, a computer product etc.), the innovative character of the project;
- Belong to the category of industrial research and experimental development.
In order to assess compliance with all the requirements of the new tax stimulus measure, taxpayers will be able to request a certification/expert opinion from an expert included in the Register of Experts in Research and Development, established at the Ministry of Education and Scientific Research.
We remain available for further clarification.
