The Ministry of Communications, Education and Labour together with the Ministry of Finance issued Order no. 409/4020/737/703 (hereinafter “the Order”) which is applicable from 1 July 2017.

The Order provides that in order to benefit from the legal tax exemption for the prior financial year, the employer must have had, and reported separately in the financial statements, revenues generated by software development of at least €10,000 for each employee who will benefit from the tax exemptions. The amount is established taking into consideration the average monthly currency rates communicated by the National Bank of Romania.

Moreover, companies that register within the course of the fiscal year or companies that are subject to restructuring are exempt from meeting the criteria in order to benefit from tax exemptions.

Furthermore, the tax exemption shall only apply to incomes strictly related to computer software development carried out according to an employment agreement, regardless of the date of its conclusion and without being conditional on the employee's contribution to the minimum revenue threshold of €10,000.

Conclusions: In order to benefit from tax exemption, IT programmers must fulfil the revived former criteria.