Last updated: 22 January 2015
Government Decision no. 332/2014, passed in May 2014; set forth a State aid for companies who create new jobs in order to promote regional development. This decision, subject to our article from June 26, was amended in September 2014 and starting from February 2015 it represents again a point of interest, given that a new project funding session was opened. Hereinafter you can find information regarding the new session, as well as the newest changes thereof.
A NEW FUNDING SESSION
As a reminder, please note that the State aid set forth by Decision no. 332/2014 supposes the reimbursement of the salary expenses generated by the creation of new jobs over a consecutive period of 2 years, following the completion of initial
investments in certain areas. The initial investment can be achieved through the creation of a new facility, the extension of the capacity of an existing facility, the diversification of the production of such facility or the fundamental change of a facility’s general production process.
The above mentioned jobs must be maintained for a period of 5 years after their creation, respectively 3 years for small and medium enterprises. Companies creating jobs in the North-West, Centre, North-East, South-Muntenia, South-West, Oltenia regions can benefit from an aid of 50% of the eligible expenses (salary costs), within the limits of 37.5 million Euros.
Thanks to the success of the last session, during which 30 companies were admitted to the second stage of project assessment, companies which will create 3,724 new jobs in the future, the Ministry of Finance recently announced the opening of a new session in 2015; this session will take place between February 2 and February 27, 2015.
Therefore, new funding application can be submitted to the Ministry during the period mentioned above.
MORE PERMISSIVE RULES
While the former version of Government Decision no. 332/2014 provided the compulsory creation of 20 new jobs in order to obtain funding, after the amendments brought by Government Decision no. 784/2014, the number of jobs to be created 3 years after the completion of the investment was reduced to 10, out of which 3 must be created for disadvantaged workers.
Moreover, according to the previous regulation, the State aid had to have a stimulating effect for the company. Consequently, the documentation accompanying funding applications had to prove that the project would not have been achieved without the State aid.
Following the adoption of Decision no. 784/2014, this condition was eliminated; therefore, the company no longer has to prove the lack of profitability of its investment.
As regards tangible assets (lands, buildings, installations) and intangible assets (patents, licenses, know-how) corresponding to the initial investment, such assets have to be new, except for those purchased by small and medium enterprises.
As a result of these changes, the total number of companies who will be able to benefit from the State aid is estimated at approximately 1,500 – 1,700...