The outgoing Council of Ministers approved the introduction of a tax incentive for companies that invest in research and development (R&D).
Taxable entities carrying out R&D activities will be allowed, for tax purposes, to additionally deduct 25% of their expenses in the year in which they are reported, provided certain conditions are met. If, as a result of development activities, a long-term intangible asset is created, it is proposed that the taxable entity be entitled to increase by 25% the development costs included in the historical cost of that asset.
The aim of the measure is to encourage companies to invest more in innovation and new technologies. This is expected to lead to increased business competitiveness.
According to the statement, such incentives encourage the creation of highly skilled jobs and entrepreneurial activity, which in the long-term lead to higher productivity, sustainable economic growth, and an improved international position for the country.
The National Assembly is yet to review the proposed bill.