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December 5, 2020

Romania, in the top of highest incentives granted to IT employees, at region scale

Romania is the only country of the region that exempts from taxation the salary incomes of IT employees, with the highest tax rate being applied in Poland (32 pc) to the IT employees with annual wage incomes above EUR 20,500, according to an analysis made by Accace, whose results were released yesterday. As comparison, in Poland and Slovakia the employees of the IT sector not only do not receive incentives from the state, but are subject to tax rates of 32 pc and 25 pc respectively, because they belong to the category of best paid personnel countrywide. Under the present legislation, in Romania, for a net negotiated monthly salary of EUR 1,000 paid to – say – a tax-exempted software programmer, the employer must sustain a cost of EUR 1,530, compared to EUR 1,822 EUR, the sum it should pay if the 16 pc tax were enforced. Practically, for an IT employee which is exempted from the tax, the company saves 292 EUR/month in salary costs, giving a total saved sum of EUR 10,220 for 50 employees, of which 35 are subject to the tax exemption.

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