Government prepares new support scheme for 150 companies

The government has prepared a new support scheme to be applied by the end of 2020 for the benefit of 150 companies, according to Mediafax.

The support scheme is meant to encourage major investments in the economy. Companies will be able to write off the costs of acquiring tangible and intangible assets as eligible expenses but only if the value of the initial investment is a minimum of EUR 20 million.

The state will finance acquisitions of tangible and intangible assets under the form of non-refundable loans, within maximum limits attributed according to the region and the interval. 

The maximum level of state aid that a company can benefit from within this scheme is:

– for Bucharest – the RON equivalent of EUR 11,25 million for 2014-2017; the RON equivalent of EUR 7.5 million for 2018-2020;

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– for the Western region and Ilfov – the RON equivalent of EUR 26.25 million;

– for the North-Western, Central, North-Eastern, South-Eastern, South-Muntenia and South-Western Muntenia regions the maximum level will be the RON equivalent of EUR 37.5 million.

Tangible assets are defined as assets associated to the initial investment represented by new constructions, technical installations, machines and equipment, while intangible assets are defined as transfers of technology or acquiring intellectual property rights, know-how or unpatented technical knowledge.

Companies applying for state aid within this project will have to meet several conditions, first and foremost being that they are not in financial difficulty, they do not carry any sort of fiscal debt and are not in insolvency, under special management or have already benefited from other forms of state aid.

They will also be obligated to maintain activity within the initial investment for at least two years after receiving financing.