IT doesn’t create new things anymore. “The Romanian IT sector is absorbing this Romanian work on large loan operations with little added value,” said Florin Pogonaru, president of the Association of Romanian Businessmen (AOAR), referring to fiscal incentives in the sector (i.e., income tax exemptions for employees).

*By credit operations, he means the fact that IT produces software components that are later integrated into large external applications, not into finished Romanian products.

“All we’ve done with these measures is reduce IT. In addition to the good measures taken at the time, with this measure (the fact that it was not removed) we reduced the added value in IT,” he stated.

Pogonaru believes there should be a tax cut for those doing AI research, but only for 1 year.

“Let’s do it because the time has come, but no more, and not support (exception – object) in general for IT that goes on loan,” explained the representative of AOAR at the News.ro conference.

ANIS: The facility has led to increased IT employment and higher wages, keeping the workforce in the country

Mihai Matei, president of the Association of Employers in the Software and Services Industry (ANIS), says the facility has led to more IT workers and higher wages, keeping the workforce in the country.

“IT scientists always had an alternative to leave the country, and then they managed to keep them in the country for slightly higher salaries. It cannot be said that they destroyed it,” he told HotNews.ro.

The reason why we do not have innovation, in his opinion, is different.

“There is a problem with venture capital funds in Romania, there is a lack of them. To be successful in product creation and have many products on the market, you need to have many startups. Out of 100 ideas, only 10 survive,” said Mihai Matei.

IT specialists will pay income tax on amounts exceeding 10,000 lei

IT professionals will pay income tax on amounts exceeding 10,000 lei, which is practically the limit of the facility, according to the tax increase bill passed by the Çolak government in parliament.

“It has quite a big impact, because the main costs of a technology company are especially salaries, in the amount of 70-80%. At the moment when the object disappears, this value increases,” explained the representative of ANIS.

Çolaku’s government is increasing a number of taxes and adding new ones through the proposed project, from VAT and micro-enterprises to sales tax for large companies and banks. Some companies will be affected by several taxes at the same time. You see the beer business, but there are other industries as well.

To learn more about the increased and introduced taxes, read: What taxes are added and increased by the PSD-PNL coalition / Everything you need to know

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