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Romania, the only country in the region not to tax wages of IT employees (survey)
Romania is the only country in the region not to tax the wages of IT employees, whilst Poland has highest payroll tax rate (32 percent) in the industry, shows a survey conducted by Accace - one of the major outsourcing and business consulting companies in Central and Eastern Europe.
Currently, for a negotiated net monthly salary of 1,000 euros collected by a tax-exempt computer programmer, the employer incurs 1,530 euros in labor cost, compared to 1,822 euros - the total cost if the 16 percent tax were applied.
The authors of the survey conclude that for a tax-exempt IT employee the company saves 292 euros per month in payroll costs, which means that for a number of 50 employees, of whom 35 are tax exempt, the company would save a total of 10,220 euros a month.
Poland charges the highest tax rate in the region on IT employees, collecting annual earnings above 20,500 euros - that is 32 percent. In Slovakia IT employees are taxed 25 pct for wages exceeding a yearly 32,000 euros.
In Romania, the payroll exemption for software developers was first introduced in 2001 and one of the most important amendments to the law was introduced in 2013, specifically the increase from 6 to 14 of the number of majors accepted for exemption from the income tax.