Q2 / Average monthly income per capita in Romania has risen to nearly RON 1,600: Changes in redistribution of family budget
Data published by INS for the second quarter of 2018 show that Romanians’ monthly incomes have reached nearly RON 1,600 per person. They were RON… Mai mult›
According to the data released by Eurostat, Romania’s current account deficit exceeded, in the second quarter of the year, the threshold of five percentage points… Mai mult›
Strategic chemical industry: Romania, on top in import increase and ranking last in EU in terms of increase in exports outside single market
Data published by Eurostat show that Romania recorded the second highest annual growth rate in imports of non-EU chemicals from 2007 to 2017 (13.1% per… Mai mult›
Rising incomes have fuelled consumption and, implicitly, the economic growth in recent years, but not the savings. Although a large proportion of the population… Mai mult›
Total turnover in the IT sector increased by 11 percentage points in 2017 compared to 2016 and exceeded the four billion euro threshold forecasted, according… Mai mult›
de Mariana Bechir , 24.9.2018
But Romania is not among the countries that place a major focus on fiscal competition: this year, the legislation has not been amended to grant new R&D investment facilities.
Between 2015 and 2017, changes in terms of tax incentives for the R&D field were modest, but 2018 brought significant improvements in many countries – 14 out of 41 countries (namely 34% of the jurisdictions interviewed) forecast new or more generous incentives for research and development this year (compared to only 22% in 2017).
Nine of 14 countries take measures for the second consecutive year.
Examples of very active states:
- Singapore has increased the tax deduction for labour costs and consumables needed for the qualification of research and development projects made in Singapore, from 150% to 250%
- Poland has increased its tax deduction from 100% to 200% as of January 1, 2018.
Situation in RomaniaThere are four programs to stimulate research and development:
- Exemption from corporate tax in the first 10 years of activity for companies carry out only R&D and innovation activities, as well as associated activities.
- additional deduction of 50% of the eligible R&D expenditure in the calculation of the corporate tax
- accelerated depreciation of qualified research and development assets
- tax exemption for the wage income of employees working in research and development or technological development.
But most facilities are difficult to access:
- Employees who already had the tax relief applied on their wages in December 2017 were potentially affected by the transfer of social security contributions from the employer to the employee as of January 2018. Tax legislation has brought, though, with some delay, a legal leverage to compensate for the net loss in salaries of these categories of employees, under certain conditions.
- The provisions governing the exemption from corporate tax were introduced in the Romanian Tax Code in January 2017, but the implementation rules have not been issued yet, therefore it cannot be applied.
- From a corporate tax perspective, although a large proportion of taxpayers working in this field know the tax benefits, most of them are still in the process of analysing the eligibility, with no clear implementation phase, the study states. This is largely because the lack in consulting the R&D Expert Registry, as it is not functional, although the law provides that the employer, employee or tax authorities may request expert reports prepared by experts enrolled in the Register of experts in domains of research and development, for the validation in the classification of R&D activities.
- The 10-year tax exemption facility cannot be applied, as there are no implementation rules and taxpayers have a justifiable fear that this measure can be categorized as State aid.
Lăsați un comentariu
Only Cluj-Napoca is among the 22 European cities that will receive financing from the European Regional Development Fund (FEDR) for innovative solutions in addressing urban… Mai mult›
Prime Minister Dancila dismissed 13 of 15 civil society representatives from Economic and Social Council. They were blocking legislation that did not gathered all opinions
Prime Minister Viorica Dancila has replaced 13 of the 15 civil society representatives in the Economic and Social Council (CES). Following a decision published on… Mai mult›
West Quadrilateral / Four counties joined to directly access European money for major infrastructure projects
From right to left: Gheorghe Falca, Nicolae Robu, Ilie Bolojan. Emil Boc, Mayor of Cluj Napoca, misses Four mayors from the West of the country… Mai mult›
Chamber of Deputies / PSD loses UDMR’s support for amending Offshore Law, draft returns to committees for a week
The plenum of the Chamber of Deputies decided on Wednesday to resend the Offshore Law to committees after a seemingly surprising request of UDMR leader… Mai mult›
The Government adopted on Thursday the draft Emergency Ordinance for amending and supplementing legislation in the field of insolvency, which provides among other things for… Mai mult›
Unlike the vast majority of the economic areas, in which we are at the bottom of the European ranking, Romania succeeded to rank 7th by… Mai mult›
There are clear signs that the lobbying action launched by the ruling coalition in Brussels in favour of the government in Bucharest will end with… Mai mult›
MFP: Romania does not endorse a separate budget for Eurozone and rejects the idea of taxing financial transactions
Romania does not endorse a separate budget for Eurozone and rejects the idea of taxing financial transactions, Minister of Public Finance Eugen Teodorovici said after… Mai mult›
Finance Ministry wants to change rules for insolvency: state could also register claims after procedure is launched
Companies’ possibility to avoid paying creditors (and in particular the payment of tax receivables) simply by declaring their insolvency would be drastically limited, according to… Mai mult›
Prime Minister Viorica Dancila, European Commissioner Phil Hogan and Agriculture Minister Petre Daea The swine fever epidemics in Romania has an impact on neighbouring countries,… Mai mult›
Infrastructure projects lost EUR 41.5 million following budget amendment. In what projects cuts have been made
Despite the assurances that Dancila government is concerned and intensely working on the road infrastructure projects, at the budget amendment the Transport Ministry has cut… Mai mult›
Leaders of the political groups in the European Parliament have decided to adopt in October a resolution on the rule of law in Romania. The… Mai mult›
"Romania's buffers have deteriorated, the country is less prepared for a negative shock" - IMF will reduce economic growth estimate
Romania will be less prepared if the economy is hit by a negative shock, as the structural deficit has been deteriorated - IMF representative for… Mai mult›
Premiere: CSAT asks Finance Ministry to amend amendment - session suspended until Government comes with a draft that does not affect budgets of secret services
President Klaus Iohannis suspended on Tuesday the CSAT meeting for discussing the budget amendment, as there was no consensus on the budgets of institutions from… Mai mult›