Romanian authorities are working on an emergency ordinance about a state aid to cover the IT staff costs that will result from the transfer of employer-employee’s social contributions, which will be discussed by the Government in its next week meeting, Minister of Public Finance Ionut Misa says.
According to him, this will address companies that have IT employees and who would have to pay some additional costs of 8.5 percent.
Regarding the state budget receipts, Misa said that these have exceeded the revenue projected in the Budget Law.
”ANAF’s receipts are of over 100 percent in 2017. We hope to bring even a few hundred million extra cash from large taxpayers and other categories, as well as from evasion, anti-fraud, customs.
According to some amendments to the Tax Code, as of 1 January 2018, the social contributions will be transferred from employer to employee, while the income tax drops from 16 percent to 10 percent.
The level of contributions paid for the gross salary is going to decrease by 2 percentage points, from 39.25 percent to 37.25 percent, but out of the total of 22.75 percent contributions due by the employer, 20 points are transferred to the employee.
However, the employees of IT companies benefited from exemptions from payment of income tax.