Romania: Latest changes to Romanian research and development over-deduction rules


A joint order of the Ministers of Finance and of Research, Innovation and Digitization, No 3.265/21.453/2022, published in Official Gazette No 967 on 4 October 2022, (the “Order”) amends and supplements joint order of the Ministers of Public Finance and of National Education and Scientific Research No 1.056/4.435/2016 to approve norms on de-ductions for research and development expenses when calculating the taxable result for profit tax purposes.

The Order stipulates that, starting from 1 January 2023, to qualify for an additional 50% deduction for expenses related to research and development when calculating taxable result for profit tax purposes, activities must meet all of the following conditions:

1. They are carried out in the context of a research and development project defined by GO 57/2002 on scientific research and technological development, which must include:

(a) project purpose and objectives;
(b) the field of research and development;
(c) the project period;
(d) the resources allocated to the project;
(e) the project budget;
(f) the category of the result of the R&D activity according to Article 74 of GO 57/2022;
(g) innovative character.

2. They constitute applied research and/or experimental development activities.

Also, to determine which projects and activities qualify as research and development projects, the Order establishes a body of experts registered in the National Register of Experts for the certification of research and development activities.

To have their projects and activities classified as research and development and to benefit from the tax incentives provided for in Article 20 of the Fiscal Code, taxpayers now have the option of requesting certification of their activities by an expert registered in the National Register of Experts. “Large” taxpayers, as defined in ANAF Order no. 3.609/2016, are obliged to request certification of their R&D activity.

Such certification is not required for R&D projects and activities that are financed from national and international public funds.