Order no. 20463/3964/967/1415/2023 regarding the classification as software development activity

Published in the Official Gazette of Romania no. 370, on 2 May 2023, repeals, as of 1 June 2023, the provisions of the previous Order no. 21813/6421/2246/4433/2022 and introduces certain new provisions, as follows:

• employees of local public institutions, as regulated by the new Order, may also benefit of the income tax exemption facility specific for software development activity;
  
  
• compared to the previous Order, the new Order introduces other specific provisions as regards the application of the facility for employees of public institutions and local public institutions, as regulated within its’ content;
  
  
• among the conditions that must be met in order to be granted the facility, is that the job position must be part of a department that has at least one of the following areas of activity, reflected in the employer's organisational chart: information and communication technology, artificial intelligence and emerging digital technologies, electronic tax administration, databases, e-government services and digital transformation;
  
  
• with respect to the 'job description' document, which is required, among others, for the purpose of granting the facility, the new Order provides that it can also be any other legal act establishing the job responsibilities;
  
  
• provisions are introduced on the possibility of applying the facility also on the basis of delegation acts, without further clarifications compared to the provisions of the previous Order.
  

The provisions are applicable starting with June 2023 income.