Nokia To Lose Incentives For Romanian Plant If Eligible Expenses Top EUR50M-Official

Gavrea said Nokia’s eligible expenses with the project might exceed EUR50 million, which calls for a decision of the European Commission whether the Finnish company still benefits from fiscal incentives or not.

 

European Commission regulations stipulate investors can benefit from fiscal incentives only if their eligible expenses do not exceed EUR50 million.

 

“I cannot say for sure how much (the eligible expenses –e.n.) will be in Nokia’s case at Jucu, but they will definitely top EUR50 million and therefore other rules will apply. If the European Commission decides it, Nokia will no longer benefit from the incentives at the industrial park and will have to pay all the proper dues. It might lose the two tax exemptions, for the land and the buildings, which are quite big,” the official at Tetarom said.

 

He said losing those incentives should not be a problem for Nokia, as the company officials confirmed they plan to increase their investment in the plant and therefore to exceed the EUR50 million threshold of eligible expenses.  

 

The list of eligible expenses includes investments in buildings, infrastructure, technological devices and equipment.  

 

“If eligible expenses are below EUR50 million, the company benefits from incentives granted through the status of industrial park. If this amount is topped, the incentives are cancelled,” Gavrea explained.