Tax facilities for IT companies Romania

Do you want to become an IT entrepreneur in Romania? Companies in the IT field benefit from tax facilities.

IT payroll tax – tax relief, when and to whom does it apply?

The main tax change is aimed at IT employees who earn income from wages and who will be affected by the capping of the exemption from paying income tax.

What is the tax exemption for IT salaries?

Some IT workers benefit from a higher net salary due to the income tax exemption – they do not pay the 10% income tax.

Who does the tax exemption apply to?

According to the new tax provisions, the tax exemption applies:

1. employees in the IT sector who earn salaries below the ceiling of 10,000 lei/month (what exceeds the ceiling is taxed normally, without facilities, according to the law).

2. but also to employees who carry out computer program creation activities (research-development field)

When does the tax exemption apply?

As of January 1, 2024, the tax rules in Romania have changed regarding the granting of exemption from paying income tax in the IT field. Thus, the facility is only granted for a gross salary of up to 10,000 lei/month/CIM. The exemption only applies to:

1. from a single employer (where the basic function is registered)

2. based on a self-declaration

To keep in mind:

The IT tax exemption applies only in respect of income earned up to December 31, 2028.

Taxes LLC (SRL)

Taxes for IT companies are changing from this year. Thus, if you want to have a micro company, you must know that the tax rate is 3%.

From 2024, a positive change will see the general legislation reintroducing the two tax rates for micro-enterprises (1% and 3%). They will be applied as follows:

• 1%, for companies with revenues below the minimum ceiling of 60,000 euros

• 3%, for companies whose revenues exceed the ceiling of 60,000 euros or which carry out activities, main or secondary, corresponding to CAEN codes specific to the IT, HoReCa, legal and medical fields.

Of course, the other conditions for entering the micro-enterprise regime in 2024 remain the same:

1.minimum one full-time employee/mandate contract

2.income below 500,000 euros/year

3.revenues from consultancy not to exceed 20% of the turnover.

So, as an IT entrepreneur, you have to choose between:

• Micro LLC with 3% of total revenues

• LLC profit tax with 16% of the profit (advantages if your company have many expenses that can be deducted).