- Name of the instrument - Local language
- Deductibilitatea cheltuielilor cu formarea profesională
- Name of the instrument - English translation
- Tax allowance
- Type of instrument
- Tax incentive for companies
- Type of entry
- Single instrument
- Short description
Companies can deduct training costs from their taxable profits. No maximum amount/share of training costs that can be deducted is specified in the regulation.
- Short description of the related instruments
- Level of operation
- Name of a part of the country
- Name of the region (for regional instruments)
- Name of the sector (for sectoral instruments)
- Key scheme
- Legal basis
2000: the main law on adult vocational training (Government Ordinance no. 129/2000 on adult vocational training, republished in 2014, art. 47. Law no. 571/2003 - Fiscal Code, with consecutive regulation - art. 21 alin (2) lit.h.)
- Objective(s) and target(s)
By introduction in the OG 129, and especially in the Fiscal Code, companies are encouraged to invest in training, by recognising training costs as production costs.
- Year of implementation
Companies decide if and how they spend money on vocational/professional training, then introduce these costs in the yearly calculation for profit taxes and the Ministry of Finances supervises the calculations.
- Eligible group(s)
- Group(s) with preferential treatment
- Education and training eligible
Vocational/professional training of employees, non-academic secondary (ISCED 2-3) and post-secondary non-tertiary (ISCED 4) VET, certified (not under ISCED classification) CVET.
- Source of financing and collection mechanism
State (loss of tax revenue)
- Financing formula and allocation mechanisms
No maximum amount/share of training costs that can be deducted by a company is specified in the regulation.
Allocation: Reduction of profit taxation basis
- Eligible costs
Fees and other costs related to education and training.
- Frequency of the use
- Volumes of funding
- Beneficiaries/take up
- Organisation responsible for monitoring/evaluation
Fiscal Council (Consiliul Fiscal ) 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
National Qualificaton Authority: Ordonanta Guvernului nr. 129/2000 privind formarea profesionala a adultilor, republicată (Government Ordinance no. 129/2000 on adult vocational training, republished in 2014) - http://www.anc.edu.ro/uploads/images/Legislatie/OG%20129-2000-republic%…
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