New provisions regarding the inclusion in the activity of creating computer programs
The following are the provisions of Order no. 20,463/3,964/967/1,415/2023 regarding the inclusion in the activity of creating computer programs, recently published in the Official Gazette (no. 370 of May 2nd, 2023).
It should be noted that natural persons benefit from income tax exemption, according to article 60 point 2 of the Fiscal Code, for the income obtained from salaries and similar to salaries as a result of carrying out the activity of creating computer programs, under the conditions established by joint order of the Minister of Communications and Information Society, of the Minister of Labour and Social Justice, of the Minister of National Education, and of the Minister of Public Finance.
Order No. 20,463/3,964/967/1.415/2023 repeals the previous provisions contained in Order No. 21.813/2022 and makes some changes or completions to the procedure for granting tax exemption.
1. Employees of public institutions, as well as of local public institutions, for the period during which they carry out activities related to the creation of computer programs, according to the specific competencies and attributions set out in the job description or in any other legal act establishing the employee’s job attributions, benefit from the tax exemption on income from wages and income assimilated to wages, provided the conditions set out in the order are cumulatively met.
The previous provisions did not refer to employees of local public institutions.
2. For the above personnel, the position assigned to the activity of creating computer programs can also belong to the category of those established outside the organizational chart, according to the law.
3. Separate records of the activities of the employees benefiting from the provisions of paragraph 1 shall be kept monthly, during the period in which the activity of creating computer programs is carried out, to grant the fiscal facility. The manner in which the monthly activity is highlighted is established by an administrative act of the head of the institution.
What is happening in the private sector:
Order No. 20,463/3,964/967/1,415/2023 maintains (except for some minor changes) the conditions to be met for the application of the tax exemption in the private sector.
Thus, employees of economic operators who carry out their activity on the territory of Romania in accordance with the legislation in force, whose activity includes the creation of computer programs (NACE codes 5821, 5829, 6201, 6202, 6209), benefit from the payment exemption tax on income from wages and assimilated to wages, provided the following conditions are cumulatively met:
a) the positions in which they are employed correspond to those in the list of occupations and activities included in the Annex;
b) the position is part of a department whose activity is in at least one of the following areas, highlighted in the employer's organization chart: information and communications technology, artificial intelligence, and emerging digital technologies, tax administration in electronic format, databases, e-government, and digital transformation services;
What the previous (repealed) order stated: „The position is part of a specialised IT department, highlighted in the employer's organisation chart, such as: directorate, department, service, office, compartment, or similar”.
c) they hold a bachelor's degree obtained after completing a form of long or short-term higher education program or after completing the first cycle of undergraduate university studies, issued by an accredited higher education institution, or hold a baccalaureate degree and take the courses of an accredited higher education institution and effectively perform one of the activities listed in the Annex;
d) the employer has obtained in the previous fiscal year and has separately recorded in the analytical balances income from the activity of creating computer programs intended for commercialization;
e) the annual income referred to in letter d) has a value that represents at least the equivalent in lei of EUR 10,000 (calculated at the average monthly exchange rate communicated by the National Bank of Romania for each month in which the income was recorded) for each employee benefiting from the exemption from payment of income tax.
Important! The provisions of Order No. 20,463/3,964/967/1,415/2023 will enter into force on June 1st, 2023.
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