Romania R&D Tax Incentives

Romania's R&D Tax Super Deduction allows companies to deduct more than 100% of qualifying research and development expenditures from their taxable income. This means for every leu spent on eligible R&D activities, companies can claim an additional deduction beyond the actual cost, significantly reducing their effective corporate tax burden on innovation-related investments.

Qualifying expenses under Romania's R&D super deduction typically include personnel costs for researchers and technical staff, consumable materials used in R&D, equipment depreciation directly related to research activities, and costs for contracted R&D services. Companies must ensure their projects meet the definition of fundamental research, applied research, or experimental development.

Romania permits a fifty percent additional deduction on qualifying research expenditures, allowing companies to deduct one hundred fifty percent of eligible costs from taxable income. This exceeds Hungary's standard allowance and approaches Poland's enhanced regime. Combined with Romania's competitive sixteen percent corporate tax rate, the effective after-tax cost of R&D investment becomes substantially lower than Western European alternatives.

Companies must maintain contemporaneous project documentation including technical narratives describing scientific uncertainty addressed, employee timesheets allocating hours between qualifying and non-qualifying activities, and itemized expenditure records. The Romanian fiscal authority requires Ministry of Research certification confirming project eligibility. Retroactive documentation assembled after fiscal year-end frequently triggers disallowance during examination proceedings.

Romania permits a fifty percent additional deduction on qualifying research expenditures, allowing companies to deduct one hundred fifty percent of eligible costs from taxable income. This exceeds Hungary's standard allowance and approaches Poland's enhanced regime. Combined with Romania's competitive sixteen percent corporate tax rate, the effective after-tax cost of R&D investment becomes substantially lower than Western European alternatives.

Companies must maintain contemporaneous project documentation including technical narratives describing scientific uncertainty addressed, employee timesheets allocating hours between qualifying and non-qualifying activities, and itemized expenditure records. The Romanian fiscal authority requires Ministry of Research certification confirming project eligibility. Retroactive documentation assembled after fiscal year-end frequently triggers disallowance during examination proceedings.