Last updated: 6 June 2018
Foreign and local investors can benefit from a range of tax incentives when they establish themselves in industrial parks in Romania, created in order to stimulate direct investments, regional development and the creation of new jobs.
The legal basis for investments in industrial parks is represented by Law no. 186/2013 regarding the establishment and operation of industrial parks. This law establishes the fiscal incentives that both the manager and the residents of industrial parks may benefit from, in compliance with the conditions stipulated by the de minimis aid schemes regulated by Order no. 2.980/2013 (the de Minimis Aid Scheme for investments in industrial parks, respectively the Regional State Aid Scheme supporting initial investments in industrial parks).
Both Schemes apply between 1 October 2013 and 31 December 2020. The first Scheme has a maximum budget of 200 million Lei (about 43 million Euros), while the maximum budget of the second Scheme is 250 million Lei (about 54 million Euros).
It should be noted that the purpose of de minimis aid is to set up a support mechanism for investments made by companies operating in industrial parks, while the regional State aid scheme provides support for the initial investments made by such enterprises.
TAX INCENTIVES
Through these Aid Schemes, the authorities introduce several exemptions from certain taxes for companies that meet the eligibility conditions. Among these facilities we mention:
• Exemption from the payment of taxes levied for the change of the destination or for the withdrawal from the agricultural circuit of the land on which the industrial park is built;
• Exemption from the payment of the tax on buildings, for the buildings that make up the infrastructure of the industrial park;
• Exemption from the payment of the tax on land, for the land belonging to the industrial park;
• Exemption, with the consent of the local public administration, from all taxes due to the local budgets of the administrative and territorial units for the issuance of all urban planning certificates, building permits and/or demolition permits, for lands and buildings that are part of the park's infrastructure;
• Other facilities that may be granted, by law, by the local administrative authorities.
ELIGIBILITY CRITERIA
In order to benefit from the aid granted under the two schemes, companies are required to fulfill several eligibility criteria. Both Schemes have common eligibility criteria, however each one also sets forth several specific criteria.
Thus, among the eligibility criteria common to both schemes are the following:
• The company must carry out its activities in an industrial park;
• The company must carry out an economic activity;
• The company must be an undertaking in difficulty, as defined by the Communication from the European Commission - Guidelines on State aid for rescuing and restructuring non-financial undertakings in difficulty (2004/C244/02);
• The company must not be subject to a decision for the recovery of a State aid or, if such decision was issued, it must have been enforced and the receivable must have been fully recovered.
Companies wishing to benefit from de minimis aids must fulfill the above conditions and submit a feasibility study or an investment plan, underlining eligible expenses. In addition, companies that have been granted, in the last 2 fiscal years and in the current fiscal year, de minimis aids exceeding the limit stipulated by the law will not be eligible.
As for the additional criteria for receiving a regional aid, applicants must prove that they intend to make an initial investment in an industrial park and have not requested or received other types of State aid or de minimis aid for eligible costs.
Neither de minimis aid nor regional aid is granted to companies operating in certain sectors, such as: fishery and aquaculture, primary agricultural production, processing and sale of agricultural products. Similarly, regional aid is not granted for large investment projects, as defined by the Scheme.
AMOUNT OF THE AID
The de minimis aid is granted to companies located in industrial parks, up to a limit of 200,000 Euros (the equivalent in Lei) for each beneficiary, during 3 consecutive fiscal years, respectively 100,000 Euros (the equivalent in Lei) for road transport companies.
On the other hand, regional aid is granted in certain development regions, having the status of assisted areas. These regions are expressly provided for in the Aid Scheme.
The regional aid may not exceed 50%, 35%, 15% or 10% of the cost of the investment, depending on the period during which the aid is granted and on the beneficiary region.
The maximum rates may be increased by up to 20% for small enterprises or up to 10% for medium-sized enterprises.
ELIGIBLE COSTS
Eligible costs are costs related to the tangible and intangible assets used by the beneficiary company.
The costs related to VAT, taxes, permits, commissions, packaging, transport, commissioning, training of staff for the use of the purchased assets are not eligible.