Romanian IT companies say cutting tax allowances to IT employees is not good idea

The Software and Services Industry Employers' Association (ANIS) warns that the introduction of an arbitrary threshold for income taxation of salaries in IT highest than a certain level, on short notice and without impact analysis before consulting the industry association, "would have a strong negative impact on both local and multinational companies that have activities with high added value in Romania."

Romania's coalition is considering levying a 10% income tax (as paid by all the other employees in Romania) on IT employees with gross wages of over RON 15,000 (EUR 3,000), which is twice the average gross wage.

"The introduction of an arbitrary income tax threshold in IT, with a short implementation term, without impact analysis and without consulting the industry, would hit exactly specialists with experience in large projects, most of them international, and those with experience in new technologies. Companies in Romania have been making great efforts to keep these specialists in the country, given they are wanted by companies on global markets. Also, the industry as a whole has constantly invested in the last 20 years, in partnership with Romanian universities, in preserving and developing specialized education at a competitive level," said Mihai Matei, president of ANIS, quoted by Ziarul Financiar.

(Photo source: Snowingg/Dreamstime.com)