IT employees in Romania could lose EUR 3 mln per month from next year

The recent tax changes significantly impact the development opportunities of the local IT industry whose growth will be curtailed next year, according to the Software and Services Industry Association –ANIS. In total, 35,000 employees in IT could lose EUR 3 million worth of revenues per month starting January 1. "Although 2017 was considered by ANIS one of the most successful years for the IT industry in Romania, political and administrative decisions in recent months have transformed the efforts of over 110,000 specialists into an uncertain future,” according to ANIS. The 15% solid growth in the sector’s revenue registered this year can no longer be repeated in 2018 under the current conditions. The IT sector’s turnover exceeded EUR 4 billion in 2017. IT employees will be among those most affected by the Government’s decision to transfer social contributions from employers to employees and their revenues will decline even is companies increase their gross salaries by 20%. A higher wage growth would negatively impact companies, which would see their costs increase. Finance minister Ionut Misa said this week that the Government would approve a state aid measure to help maintain the net wages of IT employees. editor@romania-insider.com