LAW
regarding the
Promotion of Direct Investments with Significant Impact on Economy
The Parliament of Romania passes the
present law.
CHAPTER I
General Provisions
Art.1.
(1) By direct investments with significant impact on economy it is understood the
investments with a value exceeding the equivalent of 1 million US dollars, made in the
forms and ways provided by the present law and which contribute to the development and
modernization of the Romanian economic infrastructure, determine a positive spin-off
effect in economy and create new jobs.
( 2) The present law applies only to
new investments, which fulfill the criteria provided by paragraph (1) and are made after
the coming into force of this law, by natural or legal persons, subjects of private law.
Art.
2. The contribution to the direct investments
with significant impact on economy may consist only in liquidities in lei or convertible
foreign currency.
CHAPTER II
Definitions and Applicability
Art. 3. In the sense of the present
law, the terms listed below are defined as follows:
a)
The start-up date of the
investment – represents the date of signing the final reception protocol;
b)
Accelerated depreciation –
consists in including in the operating expenses, during the first year of activity, of a
depreciation of 50% of the initial value of the respective fixed asset, according to the
provisions of the Depreciation Law no. 15/1994, republished, with the subsequent
modifications and completions.
Art. 4. New direct investments with
significant impact on economy can be made in all economic sectors, excepting the
financial, banking, insurance and re-insurance sectors as well as the sectors regulated by
special laws, provided they are in compliance with the following conditions:
a)
They do not infringe environment
– protection regulations;
b)
They do not affect the interests
of security and national defense of Romania;
c)
They do not affect the public
order, health or morality.
Art. 5. New
direct investments with a value exceeding one million US dollars or the equivalent in lei
or other convertible foreign currencies and which will be effectively completed within
maximum 30 months from the date of statistical registration with the Ministry of
Development and Prognosis, enjoy the incentives mentioned at Chapter IV.
Art. 6.
New direct investments considered as being of major interest for the national
economy will be presented to the Department for Foreign Investors.
Art. 7.
(1) In case that an investment qualifies for incentives granted by
several laws, the investor has to explicitly decide upon one single incentives system.
(2) The granting of the incentives provided by the present law signifies, by right,
the renunciation to the incentives provided by other laws.
CHAPTER III
Guarantees
Art. 8. Investments made in Romania cannot be expropriated, excepting the cause of
public utility. Taking such a measure is non-discriminatory and is carried out in
accordance with the provisions of the law.
Art. 9. Direct new investments made
according to the provisions of the present law shall benefit from the legal status
established by it, throughout their entire existence.
Art. 10. Foreign investors also enjoy
the following rights:
a)
to fully transfer abroad the
profits they are entitled to, in full in compliance with the foreign currency regime in
Romania, after paying the taxes, duties and other obligations provided by the Romanian
legislation;
b)
to transfer abroad, in the
currency of the investments, the amounts obtained following the selling of shares or
equity, as well as those resulted from investments liquidation, according to the foreign currencies regime in Romania;
c)
to transfer abroad all amounts
received as damage in the situation provided by art. 8.
Art. 11. Foreign investors will benefit
from all rights provided in the bilateral agreements for the promotion and mutual
guarantee of investments signed by Romania with their countries of origin.
CHAPTER IV
Incentives
Art. 12. (1) Technological machinery,
installations, equipment, measuring and control apparatus, automation equipment and
software products purchased from abroad, which comply with the conditions stipulated at
paragraph (3), necessary for achieving the investment, are exempted from the payment of
custom duties according to the list approved by joint Order of the Minister of Development
and Prognosis and Minister of Public Finances.
(2) The new goods, mentioned at
paragraph (1), imported or Romanian, necessary to achieve the investment, enjoy during the
completion period of the investment, until its start-up, of a delay in the payment of
value added tax, according to the regulations in force, respectively until the date of
25th of the following month after the start-up of the investment.
(3) In the sense of the present law,
the goods mentioned at paragraph (1) are considered new goods if they have been produced 1
year at most prior to their bringing to Romania and they have never been utilized.
(4) The conditions stipulated by
paragraph (3) also apply to goods provided by paragraph (1) that are produced in Romania.
Art. 13. (1) The new investments, made
according to the provisions of the present law, enjoy of a deduction of 20 % of their
value. The deduction fiscally calculated in
the month the investment is completed, by registering it at the deductible amounts
provided in the taxation form.
(2) In case a fiscal loss is recorded,
this may be carried forward during the following 5 years from the taxable profit.
Art. 14. Investments made under the
provisions of the present law benefit from the use of accelerated depreciation, according
to Law no. 15/1994, by announcing the local fiscal authority where the tax payers have to
submit their tax forms, but with no obligation for a prior approval from it.
CHAPTER V
Authorized Institutions, Registration and
Procedures
Art. 15. (1) The Ministry of
Development and Prognosis, in collaboration with the Department for Foreign Investors,
provides the coordination of the consistent implementation of the Government’s policy
at central and local levels in the field of stimulating and promoting direct investments.
(2) In order to achieve this objective,
the Ministry of Development and Prognosis and the Department for Foreign Investors:
a)
collaborate directly with other
governmental and non-governmental institutions involved, at central and local levels;
b)
coordinate the activity of
promoting direct investments in Romania, inward and outward, securing the fulfillment
of the objectives of the national strategy in this field;
c)
take actions, including by
conferring with Romanian and foreign investors, with professional organizations, owners'
associations and the Chamber of Commerce and Industry of Romania and Bucharest for permanently maintaining a friendly
business environment for promoting direct investments, through providing legislative
harmonization in the field, simplifying procedures and eliminating administrative
barriers;
d)
operatively inform the Government
and the Prime Minister on any claims from the investors regarding infringements of legal
procedures and regulations, of professional ethics as well as on any other deeds,
voluntary or responsively performed, which affect the business environment, the initiation
and development of investments in Romania;
e)
participate and represent Romania at the works of international institutions and
associations in the field of promoting direct investments;
Art. 16. The Ministry of Development
and Prognosis, in collaboration with the Department for Foreign Investors will provide, by
request, specialized technical assistance to the investors complying with the provisions
of the present law.
Art. 17.
Ministries, other bodies of the central and local public administration, as
well as all institutions with responsibilities in issuing approvals, authorizations and
licenses have the obligation to provide an efficient solution to all investors’
demands related to the initiation and development of their activities.
CHAPTER VI
Monitoring the Investment Development and
Penalties
Art. 18.
(1) In case the companies in which investments have been made according to
the provisions of art.1, are voluntarily liquidatedwithin 10 years, they will have to pay
all due taxes according to the law, for the entire functioning period of the investment,
as well as all penalties for delays in payment of taxes and duties that would have been
compulsory to be paid in the absence of incentives, calculated according to the
legislation in force.
(2) The amounts due in accordance with paragraph (1) will primarily be paid from
the amounts resulted as a consequence of the investments liquidation.
Art. 19.
The alienation of the goods, as provided at art. 12, by the investor, within
2 years from the date of their bringing into Romania or from their purchase, will be
followed by the payment of the counter-value of the incentives granted, as well as the
penalties for delays in payment of taxes and duties that would have been compulsory to be
paid in the absence of incentives, calculated according to the legislation in force.
CHAPTER
VII
Final Provisions
Art. 20.
(1) Litigation between the investors and the Romanian authorities, regarding
the rights and obligations provided by the present law will be judged by the Courts of
Administrative Litigation according to the procedure established by the Law of
Administrative Litigation no. 29/1990.
(2) The provisions of the Convention on the settlement of investment disputes
between states and nationals of other states, signed in Washington on March 18, 1965 and
ratified by Romania through Decree of the State Council no. 62/1975, published in the
Official Bulletin, Part I, no. 56 on June 7, 1975 are still applicable in their field of
regulation.
This law has been passed with the
observance of the provisions of art. 113 of the Romanian Constitution, following the
engagement, in the joint meeting of June 19, 2001, of the Government’s responsibility
before the Chamber of Deputies and Senate.
PRESIDENT
OF THE
PRESIDENT OF THE SENATE
CHAMBER OF DEPUTIES
Valer Dorneanu
Nicolae
Vacaroiu
Bucharest, June 29, 2001
No. 332