In a recent development, Romania’s National Agency for Fiscal Administration (ANAF) has published a guide outlining new methodologies for taxing salaries in the Information Technology (IT) sector. This guide references changes in the social insurance contribution (CAS) rate, specifically addressing the reduction related to contributions to privately managed pension funds as stipulated in Law No. 411/2004 concerning privately managed pension funds.
The guide (PDF) states:
“Starting with the incomes for November 2023, individuals engaged in creating computer programs and benefiting from fiscal facilities provided under Art. 60 pt. 2 of the Fiscal Code, the CAS rate will be reduced by the percentage of the contribution to the privately managed pension fund, as provided by Law No. 411/2004 on privately managed pension funds, republished, with subsequent modifications and completions. This applies to gross monthly incomes up to 10,000 lei inclusively, at the place where the main job is located. For the portion of gross monthly income exceeding 10,000 lei, the individual does not benefit from fiscal facilities. Individuals referred to in Art. 60 pt. 2 of the Fiscal Code may opt for the payment of the contribution owed to the privately managed pension fund” – as stated in the ANAF guide.
Furthermore, data released by the National Institute of Statistics (INS) on Tuesday reveals that employees in the “Information Technology Services; Computer Services” sector have reached an average gross salary of 16,942 lei, translating to a net salary of 10,767 lei, as of September 2023. By comparison, the average gross salary across the entire economy was 7,350 lei, with a net salary of 4,593 lei in September.
These changes reflect Romania’s ongoing efforts to adapt its fiscal policies to the evolving needs of its booming IT sector, offering incentives to retain and attract talent in this highly competitive field.
