December 5, 2016
The winter holidays are approaching, and during this period companies have become accustomed to offering gift vouchers to employees, so it is a good time to bring to attention the updated information on the tax regime that applies in this case.
The granting of gift vouchers is done in compliance with the provisions of Law No. 193/2006 and the Methodological Rules for the application of its provisions approved by HG 1317/2006.
In accordance with the provisions of Article 76 (1) (a) and (b) of Regulation (EEC) No 2081 (4) (a) of Law 227/2015 on the Tax Code, gift vouchers are non-taxable in so far as they do not exceed the value of 150 lei per individual person. The methodological rules for the application of Article 76 (1) (a) and (b) shall be laid down in the Annex to this (4) (a)of the Tax Code provide that the limit of 150 lei applies separately to gift vouchers and gifts granted for each occasion of those provided by law, to each employee and for each minor child of the employee, even in situations where the parents work within the same company with the same employer. Amounts exceeding the limit of 150 lei represent taxable income from salaries and are taxed accordingly.
Also according to the Tax Code, expenses representing gift vouchers offered to employees and their minor children fall under the category of social expenses that are deductible limited to determining taxable profit, up to a rate of up to 5% applied to the value of staff salaries expenses, according to the Labour Code.
If gift vouchers are given on occasions other than those provided, i.e. Christmas, Easter, 1 June – Children’s Day, 8 March – Women’s Day and similar holidays of other religious cults, are considered advantages and will be taken into account when determining the income tax from salaries, but will not enter into the basis of calculation of compulsory social contributions.
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