Romania: Amendments to income tax exemption for the IT industry

Starting 1 June 2023, Joint Order no. 21.813/6.421/2.246/4.433/2022 regarding inclusion in the activity of creating computer programs will be replaced by Joint Order no. 20.463/3.964/967/1.415/2022, signed by the Ministries of Research, Education, Labor and Finance and published in Official Gazette no. 370 from 2 May 2023.

The new Order brings the following amendments to the application of the income tax exemption for the IT industry:

• The income tax exemption will also become applicable for employees working in local public institutions for the period in which they carry out computer program creation activities;
• The income tax exemption will also be applicable for employees working under a delegation deed (Romanian: act de delegare);
• The condition regarding the existence of an employer's specialized IT department as evidenced in its organizational chart (such as: direction, department, service, office, department or similar) has been amended to include a list of activities that may be carried out by such specialized department: information and communication technology, artificial intelligence and emerging digital technologies, tax administration in an electronic format, databases, e-government services and digital transformation.