Romania: Clarifications on the application of the salary income tax exemption for R & D activities

Salary income tax exemption for R & D activities

Order no. 4947/899/2018/1840/906 on applied research and/or technological development activities (hereinafter “the Order”), was published in the Official Journal of Romania no. 718 of 16 September 2016. The Order clarifies the application of Art. 60 point 3 of the Fiscal Code as introduced by Ordinance no. 32, approved by the Government of Romania in July 2016. According to this new provision, which aims to encourage the private sector to invest more in research and development activities, salary income earned as a result of carrying out research and development activities is exempt from personal income tax. The provision has been in force since 1 August 2016.

Tax Partner, Taxation Services, Head of People Services

KPMG in Romania


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