Romania is currently a very attractive European destination for technology investment and outsourcing. Some of its main advantages are highly skilled and diversified workforce, a stimulating business environment and competitive prices. Despite the setbacks given by the economic crisis and political turbulence on the overall market, Romania's IT sector has registered continuous growth over the past years. Romania's software providers are well recognized for their flexibility, tech expertise, good language skills, so they are a very good choice for business collaboration or outsourcing. Romania is the 6th country in the world regarding the number of IT certified specialists per capita, exceeding UK, Germany and Canada.
Romanian IT&C companies enjoy the support of the Government and this has played and important role in the market development. Some of the support consists of elimination of the tax applied on software developers salaries, price liberalization, the unique 16% taxation on profit, open foreign trade regimen and fair competition in the informational sectors. The overall vision of the Romanian Government is to encourage the development of the IT sector, so that the growth rate and investor attractiveness is maintained.
Opening an IT&C company in Romania involves the same steps as a regular company. Please find out more about the procedure here. An important difference is that having such company in the IT&C field means having certain facilities. According to the Law 571/2003, article 55, from the Fiscal Code the facilities apply to the economic operators in Romania that develop programmes for computers (registered under the CAEN code 5821, 5829, 6201, 6202, 6209), and also its employees and involve tax elimination for the income. In order to do so, the economic operators must comply all the conditions stated bellow:
a) the position for which they are employed must coincide with the ones mentioned in a special list.
b) the position is an integrated part of a specialized department of informatics as specified in the organizational status.
c) has a diploma released by an university in the field required and the tasks for the position occupied are related to its specialities.
d) the employer registered in the previous fiscal year (and has distinctly registered this in its accounting) due to activities devoted to computer programming creation for commercial purposes an annual income of at least 10.000 US dollars (equivalent in RON) for each employee that benefits from this tax deduction.
Overall, the software companies in Romania are being very well seen by foreign investors and also enjoying support from the Romanian authorities. This will further push the growth of the IT&C industry and consolidate the position of Romanian market as a top provider for best services.
For further details about the topic, the facilities and the opportunities given by Romanian IT&C industry, our attorneys are at your disposal with legal expertise in the field.