Order no. 409/4020/737/703/2017 regarding software development activities
Order no. 409/4020/737/703/2017 regarding software development activities was published in the Official Gazette no. 468/22.06.2017. Starting 1 July 2017, this Order repeals Order no 872/5.932/2.284/2.903/2016.
Employees of economic agents operating in Romania, whose object of activity includes the creation of software (CAEN code 5821, 5829, 6201, 6202, 6209), benefit from the tax exemption on salary and salary income if besides the old conditions that have remained unchanged are also cumulatively fulfilled the following conditions:
- The Employer obtained in the previous fiscal year and recorded separately in the Analytical Trial Balances income from the activity of software for commercial purposes;
- Annual revenues are at least the RON equivalent to EUR 10,000 (calculated at the monthly average exchange rate communicated by the National Bank of Romania for each month of recorded income) for each employee benefiting from the tax exemption on income.
Companies that are established during the fiscal year are exempt from the eur 10,000/employee condition for the year of establishment and for the following fiscal year.
Software development activity is the actual rendering of one of software development activities corresponding to the specific Activities mentioned in the Appendix of the Order (it was thus eliminated the phrase realization of a final product).