Investment in R&D is a key factor which drives and strengthens competiveness, boosts employment, compensates market failures and ultimately contributes to achieving sustainable economic growth and development.
Romania recognises that R&D is a national priority and has a critical role in supporting sustainable economic development. The National Strategy for Research, Development and Innovation for the period 2014-2020 has consequently established the ambitious objective of private R&D investment reaching 1% of GDP by 2020.
Hence, Romania has increased the number of R&D tax incentives available, expanding the opportunities for Romanian companies. However, there is, as yet, only relatively limited guidance on the applicability of the R&D tax incentives. Moreover, this frequently changes, as does the practice of the tax authorities during audits.
Consequently, close analysis needs to be carried out before a company opts to apply these tax incentives. Considering our extensive experience advising clients on this issue, KPMG in Romania is in a strong position to assist you in relation to the application of the available incentives.