Government approves corporate tax exemption of innovation- and R&D- oriented companies

The Government approved on Friday the exemption from corporate tax of companies that conduct activities solely in innovation, as well as research and development, and the introduction of a 1 percent tax rate for small enterprises with one or more employees, following the adoption of an Emergency Ordinance for the modification and completion of the Law regarding the Fiscal Code, announced the Ministry for Business Milieu, Commerce and Entrepreneurship (MMACA)., acording agerpres.

"I am glad that the first measures approved by the new Government aim at the business milieu, especially small enterprises and the development of the innovation and R&D sectors. I consider that the measures adopted will favour the increase of the number of companies started by young researchers, will stimulate the attraction of foreign investment in Romania and the passage to an innovation-based economy. The reduction of the taxation rate from 2 percent to 1 percent and the modification of the threshold from 100,000 euro to 500,000 euro, aims at 80 percent of active enterprises and represents an improvement of the fiscal framework and a step towards bureaucratic simplification," declared the Business Milieu, Commerce and Entrepreneurship Minister, Florin Jianu. 

According to MMACA, the modifications brought to the Ordinance aim firstly at exempting from corporate tax companies that carry out solely innovation and R&D activities, changing the statute regarding the definition of small enterprise by increasing the threshold of income achieved on December 31 of the previous fiscal year from 100,000 euro to 500,000 euro, and the introduction of the 1 percent tax rate for small enterprises with one or more employees.