State Aid Scheme for supporting investments which promote regional development by creating new jobs – Government Decision no. 332/2014 – updated Financing agreements to be signed until 31.12.2023
Eligible activities
- All activities (based on NACE codes) are eligible, except those mentioned in Addendum no. 1 of GD no. 332/2014 and art. 13.
- Examples of activities (NACE codes) not eligible under the state aid scheme: agriculture, fishing, constructions, transportation, real estate transactions, public administration and defense, other activities, etc
- If a company has as the main activity a non-eligible NACE code but intends to invest in an eligible activity, the investment is to be considered eligible, if all the other requirements are met. A detailed analysis is needed for the estimated investment and validation of the eligibility criteria.
ELIGIBLE types of companies
- Newly established companies (SME or large companies);
- Already established companies (SME or large companies);
OBJECTIVE of the scheme
Regional development by realizing an initial investment that determines the creation of a minimum of 100 new jobs.
ELIGIBLE costs
Payroll costs including gross salary (total personal income realized by the employee before taxation) and the company’s mandatory payroll due-taxes, for a period of 2 consecutive years, following the creation of the new jobs
The intensity of the State Aid
The State Aid is granted to companies, as non-refundable amounts, based on the eligible costs, up to the maximum approved intensity and the maximum level of State Aid from which a company may benefit, as follows:
| Region |
Maximum intensity |
The maximum level of State Aid – mil EUR – |
|
North – East |
50% | 37,5 |
|
South – East |
50% |
37,5 |
| South Muntenia |
50% |
37,5 |
| South – West Oltenia |
50% |
37,5 |
| North – West |
50% |
37,5 |
| Center |
50% |
37,5 |
|
West |
35% |
26,25 |
|
Ilfov |
35% |
26,25 |
| Bucharest |
10% |
7,5 |
NOTE: The call for proposals is on-going. The financing proposal and the supporting documentation are analyzed within 30 working days from the registration. In case of requests for clarification, the Ministry of Finance finalizes the evaluation process of the proposal, within 30 working days from the date when the documentation is complete.
Example
A company creates 100 new working places, with a monthly gross salary of RON 6.000 in Ploiesti, a city in the South Muntenia region, with a maximum intensity of 50%:
| KPI | Formula | Computation |
| Total annual payroll expenses | Monthly gross salary * new working places * months | 6000*100*12 = 7.200.000 RON |
| Total annual company’s taxes | Total annual gross salary * 2,25% | 7.200.000*2.25%=162.000 RON |
| Total annual payroll costs | Annual gross salary + contributions | 7.200.000 + 162.000 = 7.362.000 RON |
| Maximum Annual State Aid | Total annual payroll costs * maximum intensity | 7.362.000*50%=3.681.000 RON |
| Total State Aid | Maximum Annual State Aid * 2 years | 3.681.000*2=7.362.000 RON |
NOTE: For each project, an Eligibility Analysis is needed, taking into consideration the financial indicators from the past year and the business plan of the company, for the initial investment.
Minimum eligibility criteria:
- Entities established according to Company Law 31/1990 or Cooperative Law no. 1/2005;
- Realizes an initial investment in Romania, in one of the eligible activities (based on the eligible NACE codes);
- They do not fall under the „company in difficulty” category;
- They are not subject to enforcement, insolvency, bankruptcy, juridical reorganization, dissolution, liquidation, operational closing, or temporary suspension of activity;
- They do not object to recovering a state aid and did not benefit from other regional grants for eligible costs of the nature of labor costs, inside the same unique investment project;
- They did not relocate any activity to the unit where the initial investment will take place, in the last 2 years prior to registering the financing request, and neither they will do it for a period of 2 years after finalizing the initial investment;
- They present positive equity in the last closed financial year (for the already established companies);
- The level of the share capital is a minimum of 30.000 RON and they do not belong to shareholders who have or had In the last 2 years another company with the same activity as the one for which the financing is requested (newly established companies).
Besides the above mentioned, the investments should meet other criteria: the investments should be initial, to generate at least 100 new working places, assets should be new.