The following amendment regarding the Fiscal Code.
The Emergency Ordinance states, among others, the following amendment regarding the Fiscal Code: Income tax exemption for the salary/deemed salary income derived starting with August 2016 by individuals that perform activities related to applied research and development and/or technological development activities, provided certain conditions are fulfilled.
To benefit from stimulative tax measures researchers should meet the following conditions: has a job in a research and development department, highlighted in the organizational chart of its employer, conducts applied research and development and/or technological development activities into a research and development and / or technological development project.
The employee must also demonstrate that it has completed at least the programmes of higher education study that last a minimum of three years and lead to a bachelor degree, or equivalent, issued by an accredited institution of higher education in Romania or by an accredited foreign institution of higher education.
To fit to this normative act, the employer should have applied research and development and / or technological development as fields of work.
Therefore, individuals who work in Romania in Research and Development (R&D) or Technological Development fields benefit from a complete exemption from taxation on the employment income attributable to these activities.

Resources needed

The impact on public budget for 2017 is considered low, around - 6 milions Euro.

Evidence of success

According to the information provided by experts or recognised stakeholders and researchers, the law’s effects are positive:
Florin Talpes (, founder and CEO at Bitdefender, appreciated that tax income exemption are part of a comprehensive set of measures dedicated to foster research and development in companies. (

Potential for learning or transfer

This practice is relevant for the project theme because the law provisions address also the new materials sector, the researchers working here benefiting from the tax income exemption and being stimulated to conduct applied research projects.
Employees should meet all the following conditions, in order to benefit from the income tax exemption:
• To be employed in a unit specialising in R&D within the employer’s organization
• To carry out applied research and technological development activities within at least one formally defined applied research and technological development project
• Hold a bachelor’s degree or diploma which acknowledges the completion of long-term university studies
• Additionally, provided that the employer performs research & development activities as part of the main object of activity and that it has included the salary expenses in the budget of the research & development project, only then the income tax exemption

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Main institution
University Politehnica of Bucharest
Bucureşti - Ilfov, Romania (România)
Start Date
June 2016
End Date


Sanda Maiduc Please login to contact the author.