R&D tax credit: a new funding opportunity for innovators in Romania
The Romanian Government has officially launched the tax credit for research and development (R&D) as part of the strategic economic recovery package.
Todos & Company editorial team · EU funding consultancy since 2006
Introducing the R&D tax credit in Romania
The Romanian Government has officially launched the tax credit for research and development (R&D) as part of its strategic economic recovery package. This measure adds to the financial instruments already available to companies, especially those investing in innovation, developing new products and services, or optimising processes through high-performance technologies. Until now, direct beneficiaries of R&D funding relied mainly on non-refundable grants and EU funds; the tax credit is a complementary fiscal mechanism that can provide effective support in balancing cash flow and reducing the net cost of R&D investments.
Who can access the R&D tax credit?
The instrument is aimed primarily at companies carrying out eligible research, development and innovation activities. Beneficiaries can be micro, small, medium-sized and large enterprises from a range of sectors, from technology, pharmaceuticals, IT&C and renewable energy to agri-food and advanced manufacturing. A key point is that R&D activities must be clearly defined in line with the OMFP classifications and be demonstrable through the relevant technical documentation and the results achieved.
Companies that work with universities, research institutes or centres of excellence can use this opportunity to implement new solutions quickly and scale innovative ideas to market, by reducing the tax burden generated by investments in specialised staff, equipment, prototypes and other related operating costs.
Conditions and documents required to apply
To access the benefits offered by the tax credit, companies must prepare a clear set of supporting documents:
- A detailed description of the R&D projects, including the objectives, expected results and innovative impact;
- Technical and financial reports demonstrating the eligible costs related to R&D activities;
- Collaboration contracts with relevant partners, where applicable (scientific institutions, universities, research centres);
- Accounting documents that support the integrity and accuracy of the tax operations;
- Registration in the research and development register, if required under the legislation in force.
It is important that companies keep rigorous accounting records of R&D expenditure and, where needed, work with tax experts or consultants specialising in EU funds and tax law to maximise the benefits.
The impact of the tax credit on the entrepreneurial and innovation ecosystem
Until now, Romania has faced challenges in financing innovation, especially in the early stages of developing new products or services, when risks are high and access to capital is restricted. The introduction of the R&D tax credit is a welcome development for companies that want to build their own capabilities and strengthen their competitiveness on the domestic market as well as at regional or European level.
The instrument is in line with trends in other EU Member States, where tax credits stimulate private investment in research, reduce reliance on limited public funding and encourage partnerships between academia and business. In addition, the measure brings a sense of stability and predictability, which is essential for the medium- and long-term planning of innovative companies.
Practical recommendations for interested companies
Companies that want to take advantage of this opportunity should start with an internal audit of the R&D activities they carry out. Clearly identifying the projects and the related financial flows is the first step towards substantiating a tax credit claim. You are advised to work with tax experts and EU funding consultants to ensure compliance with the legislation and to optimise how the facility is used.
Legislative changes that may adjust the thresholds, eligibility conditions or the way the tax credit is calculated should also be monitored regularly. You should consider how to combine this mechanism with other available funding schemes, in order to build a sustainable financial portfolio adapted to the specific needs of innovation projects.
Finally, entrepreneurs need to understand that the success of an R&D project is not just about accessing tax incentives, but also about adopting an organisational culture oriented towards continuous innovation, collaboration and agility. This perspective allows not only the best use of the tax credit, but also the sustainable growth of Romanian businesses in competitive global contexts.
Want to find out what non-refundable funding you can access?
The Todos Company team helps you with the whole process: from checking eligibility and calculating your score, to preparing the application file and submitting the project.
