Companies from our country participating in international trade fairs will no longer receive direct funds for this participation, but will instead benefit from certain tax deductions, according to a legislative amendment proposal announced by Claudiu Năsui, Minister of Economy, Entrepreneurship, and Tourism.
“We want to create a system through which we offer everyone the possibility to externalize their products, to participate in fairs, and we have two options: first, an extended deductibility system, where an internationalization expense—which can be the same as currently reimbursed through the program, namely accommodation, stand rent, and national pavilion organization costs—is extensively deductible. For example, if I spent 100 RON as a company, I deduct 300 RON from taxes. But obviously, for this, I must have a tax to pay, meaning I must have conducted an activity, provided services, to have something to deduct from. So the state helps you, but you must finance it, provide your own money, and as you make a profit, the state is there and eases your tax burden,” stated Minister Claudiu Năsui during a press conference.
Additionally, the Minister specified that another solution involves converting 50% of the expenses incurred for participating in international fairs into a tax credit.
The relevant minister further noted that the solutions regarding the two tax deductions were discussed with the Ministry of Finance and the Competition Council and that, before adopting a normative act, the respective aid regarding tax deductions must be approved by the European Commission.
Asked when this system could enter into force, the Minister of Economy said he wants it to happen as soon as possible, even this summer.
The Minister of Economy stated that the budgetary impact will not be very large, but its value will be seen over time, depending on the interest of companies in export promotion.
He pointed out that, until now, the money for this program went only to a limited number of firms, which were always the same.
“Any document, whether it is a draft emergency ordinance, law, or government decision, must be discussed beforehand with the business community, which has not happened until now,” Mihai Ionescu, co-president of the Export Council and president of the National Association of Exporters and Importers of Romania, told BURSA newspaper.
Frequently Asked Questions
What types of tax deductions are proposed for companies?
The proposal includes an extended deductibility system (e.g., deducting 300 RON for every 100 RON spent) or converting 50% of expenses into a tax credit.
When will the new tax measures take effect?
The Minister of Economy estimates that the new system could become functional starting this summer, following approval from the European Commission.
What expenses are eligible for these deductions?
Eligible expenses include accommodation, stand rental, and national pavilion organization costs at international trade fairs.