Official Gazette 573/12.08 - Order no. 2086/4504/2010 dated August 6-th 2010 for the approval of the Norms regarding the deductions for the research-development expenses when determining the taxable profit.

The fiscal incentives for research-development activities represent the reduction of the taxable profit which contributors can benefit from, by supplementary deduction, at a rate of 20%, of the expenses made by them in the respective fiscal year, for research-development activities, as well as by applying the accelerated depreciation method in the case of machines and equipment used in research-development activities.

Fiscal incentives shall be granted for research-development activities which lead to results in research, capitalized by contributors in their own interest, with the aim of increasing their income.

The eligible expenses taken into account when granting a supplementary deduction for determining the taxable profit are the following:

depreciation expenses with tangible assets, created or acquired by contributors as new, and used in research-development activities;
expenses with personnel salaries who carry out research-development activities directly;
expenses with the maintenance and repair of tangible assets used in the research-development activity, performed by third parties;
depreciation expenses with intangible assets, acquired by contributors and used in research-development activities;
exploration expenses, including: expenses with consumables, expenses regarding the materials on stock, expenses with raw materials, expenses with guinea pig animals, as well as other similar products used in research-development activities;
administration expenses, which can be allotted directly to the research results or proportionally, by using a repartition key; the repartition key is the one used by contributors for the repartition of common expenses.

The category of directly allotted administration expenses may include expenses regarding: the rent for the space where the research-development activities take place, ensuring utilities such as: running water, sewage system, sanitary,, electric and thermal power, natural gases , in accordance with the area used for the research-development activities, as well as expenses for consumables and stationery, multiplication and photocopying, postal and courier services, telephone, facsimile, internet, related to the research-development activities, necessary for obtaining research results.

The category of administration expenses allotted by repartition key may include expenses for: administrative and account services, postal and telephone services, services for the maintenance of IT equipment, multiplication and photocopying, consumables and stationery, the rent for the space where the activities of the project take place, ensuring utilities such as: running water, sewage system, sanitary, electric and thermal power, natural gases and other expenses necessary for the implementation of the project.

Only those expenses recorded in the accountancy books based on justifying documents are eligible, according to the accountancy regulations in force.

In order for expenses to be eligible, they must be expenses made by contributors with the aim of producing income. Supplementary deduction is calculated quarterly/annually, as the case may be.

Accelerated depreciation in the case of machines and equipment used in researche-development activities shall be done according to the provisions of the Fiscal code, and the machines and equipment are those provided in the subgroups 2.1 and 2.2 of the Fixed asset catalogue.

The deduction of research-development expenses is described in form 101 – “Statement regarding the corporate tax”, line 18 “Other deductible amounts”.

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Official Gazette 573/12.08 - Order no. 2086/4504/2010 dated August 6-th 2010 for the approval of the Norms regarding the deductions for the research-development expenses when determining the taxable profit.