The fiscal facilitations afforded to IT companies and their employees will be extended until 2020 under the draft 2017 fiscal and customs policy, IPN reports.
The income earned by the employees of IT companies shall not be subject to taxation if several conditions are met: the company must regularly and fully pay its taxes; the company’s software sales must represent no less than 50 percent of its total sales; and the employees’ posts must be part of a specialized informatics compartment, as confirmed by the organizational chart. The employees, however, may not pass the personal tax exemption allowed under Art.34 of the Fiscal Code to their spouses.
To qualify for the income tax exemption, an IT company must present a number of documents to the fiscal authorities. These include a formal request, the founding certificate, the organizational chart, and a series of papers confirming the status of its employees.
The current fiscal facilitations are due to expire this year. Extending them until 2020 will ensure, according to the Ministry of Finance, a predictable business environment for the IT industry.
