The Recovery Tax Incentive is a deduction from the IRC (Corporate Income Tax) collection on eligible fixed assets and related to exploitation, achieved between JUL.01. 2023 and DEC.31. 2023!

Eligibility Criteria

  • Beneficiaries subject to IRC and have organized accounting.
  • Taxable profit is not determined by indirect methods.
  • There are no debts to the tax authorities.
  • Over 3 years, counted from the first day of the seventh month of the tax period in which the eligible investment expenses are incurred:
  • Do not terminate employment contracts, under the collective dismissal or dismissal by extinction of the job.
  • Do not distribute profits.

Eligible Expenses

Tangible fixed assets (such as machinery and equipment)

  • Non-consumable biological assets; and
  • Intangible assets:
  • Expenses with development projects.
  • Expenses with elements of industrial property (patents, trademarks, licenses, production processes, models or other assimilated rights).


  • Maximum amount of investment expenses = €5 million.
  • The deduction will be applied in the IRC liquidation up to the limit of 70% of the collection of this tax:
  • 10% of the eligible expenses incurred in the tax period up to the amount corresponding to the simple arithmetic mean of the eligible investment expenses of the three previous tax periods.
  • 25% of the eligible expenses incurred in the tax period in the part that exceeds the limit provided for in the previous point.


A company buys machinery with the investment amount of €1,000,000 in October 2022.

In the three previous tax periods, it made the following investments:

  • 2019: €100,000
  • 2020: €200,000
  • 2021: €500,000

The average of the investments for the three years is €250,000. Therefore, the Recovery Tax Incentive for 2022 is equal to:

  • (0.1 * 250,000) + (0.25 * 750,000) = €212,500