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Tax Facilities for the Founders of Business Incubators

Written by: Bridgewest

Tax-facilities-for-the-founders-of-business-incubators-in-RomaniaAt the end of May, a new law which provides for several fiscal facilities for companies setting up business incubators was passed. Our Romanian accountants can provide you with more information about the conditions under which a company can set up a business incubator in this country.

What are the fiscal incentives for companies?

Law No. 102/2016 was passed at the end of May and provides for several incentives for companies establishing business incubators meant to help with the development of small and medium-sized enterprises (SMEs) in Romania. The facilities will be granted under the form of governmental assistance schemes. The law provides for the following facilities:

  • -          exemptions from the land tax applied to the land plot used for the establishment and use of the business incubator;
  • -          exemptions from the property tax corresponding to the buildings where the business incubator carries out its activities;
  • -          tax exemptions for the issuance of any urbanism certificate, construction permit or demolition of buildings on the land corresponding to the business incubator.

All certificates for the land and buildings for the incubators will be issued by the local authorities. Moreover, the founders of the incubators will also be granted other tax facilities from the central or local authorities. The law allows both natural persons and legal entities to set up business incubator in Romania. The title of business incubator will be granted through a minister order and will have a 10-year validity period.

What types of incubators can one set up in Romania?

Law No.102/2016 allows the establishment of the following types of business incubators:

  • -          with a mixt portfolio for SMEs in various industries;
  • -          with a technological portfolio catering to the needs of SMEs in the technology industry;
  • -          academic incubators for SMEs activating in the research and development sector;
  • -          agro-incubators for companies in the agricultural industry;
  • -          social incubators for SMEs seeking to create a social impact;
  • -          sector-specific incubators;
  • -          virtual incubators;
  • -          incubators for the development of non-agricultural activities in rural areas.

Romanian business incubators will be able to offer the following services:

  • -          pre-incubation services which will be available for potential beneficiaries for a maximum period of 6 months;
  • -          incubation services for companies for a maximum period of 3 years;
  • -          business accelerator services for a maximum period of 2 years.

Considering that Law No. 102/2016 will be effective starting with June 22nd, 2016, we invite you to contact our accounting firm in Romania for detailed information on its content and facilities offered by the government.