General

·        0% profit tax for the reinvested profit in new technological equipment used for business purposes

·        16% Corporate Tax

·        5% Dividend Tax

·        2.25% Social Security for employer

IT&C

·       0% income tax for employees working in IT&C companies, in compliance with the Romanian current legislation

R&D

The Romanian current legislation provides certain R&D incentives that are applicable for both employers and employees that exclusively perform R&D and innovation activities or related activities. R&D incentives in compliance with the Romanian legislation:

·       0% income tax for employees working in R&D companies

·       0% profit tax for the first 10 years of activity

·       Specific deduction in case of R&D eligible expenses:

- accelerated depreciation of R&D equipment

- additional corporate tax deduction of 50% of the eligible expenditure for these activities


Industrial parks

Investors setting up manufacturing locations or offices in an industrial, scientific or technological park benefit from:

·        exemption on land tax, building tax and urban planning tax

·        exemption on taxes charged for changing the land destination for plots located within industrial parks


Support measures for employers & employees

Employers benefit from certain subsidies if hiring as follows:

·        young graduates

·        unemployed persons over 45 years or single parents supporting single-parent families, persons with disabilities or who are 5 years away from retirement

·        NEETs

·        young people at risk of social marginalization under solidarity contracts

·        apprentices (with contracts)

·        higher education graduates (with internship contracts)

·        pupils and students during the holidays

In order to diminish the effects of SARS-CoV-2 coronavirus pandemia and to stimulate employment, the government has granted certain subsidies and support measures for both employers and employees.