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February 27, 2021

CommMin Sova: Ministry, not consulted for an opinion on Tax Code; provisions would generate loss in tax-exempt IT sector

The Ministry of Communications has not been asked for an opinion on the amendments to the Tax Code, and for the tax-exempt IT sector they would generate a loss of 4 percent, Minister of Communications and Information Society Lucian Sova told a specialist digital sector conference on Monday.

“Beyond the governmental solidarity I have to prove, as a rule, exceptions give rise to exceptions, such as the tax-exemption exception for IT&C workers. From this perspective, the Ministry of Communications has not been asked for an opinion on the bill amending the Tax Code. In addition, I want to say a few things about our responsibility. Once again, the ministry has not issued its opinion on the bill amending the Tax Code, nor has it contributed to the bill. I know that what was good has not changed and the tax exemption for the IT&C workers stays in place (…) Changing the Tax Code for the tax-exempt IT sector environment would generate a 4-percent loss. I think from the perspective of the minister of communications this is a subject I have to look at, but it still is a matter of taxation. The IT&C sector must contribute 10 percent to the formation of the Gross Domestic Product (GDP), and it should be encouraged not only by tax exemptions, but also by more encouraging regulations that would be more important than the four percentage points that those working in the field and qualify for tax exemptions are likely to lose,” Sova said.

He added that an order has been developed that extends the tax exemption to include software developers without a higher education background.

On the other hand, Sova warned that the IT&C sector still needs correct administration that will enable all market players to enjoy equal rights and conditions.

He pointed out that, as far as the 5G license is concerned, it is “natural to happen, but it is not a priority of the ministry.”

Governmental representatives of the IT&C sector, together with the most important local telecom operators, participate, November 13-14, in the 7th edition of the ZF Digital Summit 2017 in Bucharest.

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