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Emergency Ordinance 115/2024 allows the deduction of the tax incentive for research and development expenses from the minimum tax
Emergency Order for the completion of Law no. 227/2015 on the Fiscal Code introduces the possibility to deduct the tax incentive applicable for research and development expenses also from the minimum tax on turnover.
The Emergency Ordinance no. 115 was published on 26 September 2024 in the Official Gazette no. 970 which supplements the Law no. 227/2015 regarding the Fiscal Code ("Fiscal Code").
This Emergency Ordinance introduces the following changes:
- Taxpayers who apply the additional deduction for research and development activities, in accordance with the provisions of Article 20 of the Fiscal Code, can deduct this facility from the minimum tax on turnover. The incentive is computed by applying the 16% rate on the amount representing the additional deduction of 50% from the eligible expenses for research and development activities. The deduction of this value is performed within the limit of the minimum tax on turnover due.
- The above provisions also apply for the computation of the minimum tax on turnover related to the fiscal year 2024 / the amended fiscal year starting in 2024.
The EY team is available for further details on the above.
Prepared by:
Raluca Vasile - Senior Manager, Business Tax Services Department
For additional information, please contact: |
- Alex Milcev – Partner, Tax & Law Leader Romania and Moldova
Miruna Enache - Transaction Tax Partner, CESA Tax Markets Leader