Tax exemption of IT salaries

IT employees who operate in Romania can benefit, in accordance with the legislation in force, from tax exemption on income from salaries and assimilated to salaries. The conditions necessary to benefit from the exemption are:

  1. The object of activity of the company must include “creating computer programs”

(CAEN-codes 5821, 5829, 6201, 6202, 6209);

  1. The positions on which the employees are assigned correspond to the list of occupations mentioned below:
  • Database Administrator                      (COR-Code: 252101)
  • Analyst                                                (COR-Code: 251201)
  • Computer technology engineer          (COR-Code: 251203)
  • Software system engineer                  (COR-Code: 251205)
  • Computer project manager                (COR-Code: 251206)
  • Programmer                                        (COR-Code: 251202)
  • Computer systems designer              (COR-Code: 251101)
  • Computer system programmer          (COR-Code: 251204)
  • Programmer    subordinate                 (COR-Code: 351201)
  • Analyst            subordinate                 (COR-Code: 351202)
  1. The position is part of a specialized department of informatics, specified in the organizational chart of the employer, such as: head office, office, division, bureau, compartment or similar;
  2. They possess a diploma awarded after the completion of a long or short-term form of higher education or hold a diploma granted after the completion of the 1st cycle of undergraduate studies, issued by an accredited higher education institution or hold a bachelorhood diploma and attends the courses of an accredited higher education institution and effectively performs one of the activities provided in the annex to the law;
  1. The employer performed in the previous fiscal year and registered distinct in the analytical balances incomes from the activity of creating computer programs for marketing worth at least 10,000 euros (calculated at the monthly average exchange rate communicated by the National Bank of Romania (BNR), for each month in which the income was registered) for each employee who benefits from the tax exemption.

* Exceptions to the fulfillment of this condition:

  • Companies established during the fiscal year are exempted from fulfilling the stipulated condition – for the year of establishment and for the following fiscal year;
  • The companies that made the object of a reorganization in accordance with the law during the year are exempted from fulfilling the condition – for the year in which the reorganization operation took place.