Fiscal Incentives.

The applicability of the fiscal incentives regime stipulated by this enactment determines the lawful waiver of any other incentives of which the investors are benefiting pursuant similar past legislation or are going to benefit. In other words, if the conditions for the application of the special incentive regime provide by this enactment are fulfilled, the potential beneficiary shall make its choice between this regime and any other incentives regime applicable.

The fiscal incentives stipulated by this enactment shall be applicable to the direct investment that fulfil the above-mentioned conditions (see point 1), and meet two supplementary conditions:

1. are effectively implemented in maximum 30 months from the date of their statistic registration with the Ministry of Developments and Evaluation (no other provisions on such registration are provided by the draft law; it is not even provided that methodological norms will be enacted in enforcement of this law; however, such norms could still be further on enacted);
2. the investor has explicitly made its choice for the application of the fiscal incentives regime regulated by this draft law.

In the above-mentioned terms, the investors will benefit from the following incentives:

1. Custom duties relief for imports of new installations, equipment, software products, manufactured with no more than 1 year before importing date, that were not used until that moment, if they are necessary for the carrying out of the investment;
2. VAT deferral for the new goods imported or purchased in Romania, until the starting of their operation;
3. 20% deduction of the carried out investment, calculated in the month when the respective investment has been effected;
4. Fiscal losses recovery from the taxable profit in the next 5 years;
5. The possibility of using the accelerated amortisation of assets.

The application of this special incentive regime is considered null and void if:

1. the companies benefiting of it are voluntarily liquidated in a period less than 10 years;
2. the goods acquired, for which the incentive regime has been applied, are sold to third parties in a period less than 2 years from their importing or acquisition.

If the application of the special incentive regime has been cancelled, then all the benefits and amounts that must have been paid if no incentive would have been applied, shall become due and must be reimbursed together with delay penalties, in accordance with the provisions of this draft law.

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