Private scholarships

Name of the instrument - Local language: Bursă privată
Name of the instrument - English translation: Private scholarships
Country: Romania
Type of instrument: Tax incentive for companies
Type of entry: Single instrument

Short description: All companies paying tax on profit are eligible for the scheme. The eligible education and training activities refer to university/post-university studies. The maximum amount that company may deduct is limited up to 20% of the calculated tax on profit (and up to 3% of yearly turnover).
Short description of the related instruments: nap

Level of operation

National

Name of a part of the country

nap

Name of the region (for regional instruments)

nap

Name of the sector (for sectoral instruments)

nap

Relevance

Marginal scheme

Legal basis

Law no. 376/2004 on private scholarships, with further regulation. Law no. 571/2003 - Fiscal Code, with further modifications - art. 21 alin (4) lit.p -

Objective(s) and target(s)

To improve investment in raising human capital, encouraging enterprises in an active human resource management.

Year of implementation

2004

Year of latest amendment

2012

Operation/Management

Companies conclude contracts under the law 376 with students during their university/postgraduate studies and pay scholarships. Companies can be reimbursed for the paid scholarships up to 20% of the tax on their profits (and up to 3% of yearly turnover) upon presenting the documents to the fiscal authorities with the yearly balance.

Ministry of Finances - through National Agency for Fiscal Administration and its local agencies - supervises yearly calculation of companies and approves reimbursement of the expenses upon verification of documentation.

Eligible group(s)

All companies paying tax on the profit.

Group(s) with preferential treatment

None

Education and training eligible

University/postgraduate studies

Source of financing and collection mechanism

State (loss of tax revenue)
company

Financing formula and allocation mechanisms

Deduction up to 20% of the paid tax, but less than 3% of the turnover.

Eligible costs

Fees and other costs related to education and training

Frequency of the use

Each year

Volumes of funding

Beneficiaries/take up

Organisation responsible for monitoring/evaluation

Consiliul Fiscal (Fiscal Council) has the responsibility of monitoring the implementation of fiscal policy and elaborates yearly reports.

Monitoring/evaluation reports available

The last report was published in November 2014, on 2013. Yet, there are no specific data regarding the overall loss in state revenue due to this instrument in the report, nor in the statistical data of the National Institute for Statistics.

Most relevant webpage - in English

Most relevant webpage - local language

www.consiliulfiscal.ro

Sources

National Agency for Fiscal Administration: Legea 376/2004 privind bursele private (Law no. 376/2004 on private scholarships) - http://static.anaf.ro/static/10/Anaf/legislatie/L_376_2004.htm

National Agency for Fiscal Administration: Legea 571/2003 coroborată cu HG 44/2004 privind CODUL FISCAL CU NORMELE METODOLOGICE DE APLICARE Text valabil pentru anul 2015, actualizat prin mijloace informatice (Law 571/2003 coroborated to Government Decision 44/2004 on FISCAL CODE WITH APPLICATION REGULATION. Text valid for 2015, updted by electronic means): http://static.anaf.ro/static/10/Anaf/Legislatie_R/Cod_fiscal_norme_2015…

Fiscal Council: Raport anual 2013 (Yearly Report 2013): http://www.consiliulfiscal.ro/ra-2013.pdf

National Institute for Statistics: Statistical yearbook 2013 - http://www.insse.ro/cms/en/content/statistical-yearbook-2013