Gift vouchers granted on the occasion of the winter holidays

On the occasion of the winter holidays, many companies offer employees gift vouchers. According to the law, they are non-taxable, insofar as their value, for each individual person, does not exceed 150 lei.

A special attention should be paid to the data mentioned in the employment contract  

Gift vouchers granted on the occasion of the winter holidays: According to the provisions of art. 76 para. (4) letter a) of Law no. 227/2015 regarding the Fiscal Code, “the following incomes are not taxable, from the point of view of the income tax: a) burial aids, aids for serious and incurable diseases, aids for medical devices, aids for births, aids for losses incurred in their households as a result of natural disasters, income representing gifts in money and/or in nature, including gift vouchers, offered to employees, as well as those offered for their minor children, the value of the transport to and from the employee’s place of work, the value of the tourist and/or treatment services, including the transport, during the holidays, for the own employees and their family members, granted by the employer for own employees or other persons, as provided in the employment contract.

Gifts, including gift vouchers, offered by employers to employees, as well as those offered for the benefit of their minor children, on Easter, June 1, Christmas and similar holidays of other religious cults, as well as gifts, including gift vouchers, offered to the employees on the occasion of March 8 are non-taxable, insofar as their value for each individual person, with each of the above, does not exceed 150 lei.

According to art. 142 letter b) of Law 227/2015 / Fiscal Code, “The following are not included in the monthly calculation of social insurance contributions: b) funeral aids, aids for serious and incurable diseases, aids for medical devices, aids for births, aids for losses incurred in own households as a result of natural disasters, income representing gifts in money and / or in nature offered to employees, those offered for their minor children, including gift vouchers, the value of transportation to and from the employee’s place of work, granted by the employer for the own employees or other persons, as well as the value of the tourist and / or treatment services, including the transport, during the holiday, granted by the employer for the own employees and their family members, as provided in the employment contract.”

Gifts in cash and in-kind offered by employers to employees, those offered for the benefit of their minor children, including gift vouchers, on Easter, June 1, Christmas and similar holidays of other religious cults, as well as gifts in money and in the nature offered to the employees on the occasion of March 8 are not included in the monthly calculation basis, insofar as their value for each individual person, with each of the above, does not exceed the value of 150 lei. “

Thus, if the granting of these gifts there is stipulated in the employment contract (collectively or individually), the amount of 150 lei does not enter into the calculation basis of income tax and social contributions. Because the gift vouchers, the gifts in money and in nature not to be taxed, they must be regulated in the employment contract (collectively or individually). If there is no collective agreement, they will be awarded through the individual employment contract. The modification of the individual contract is made by an additional act (art. 17 paragraph (5) of Law 53/2003 on the Labour Code).

In conclusion, the employer can grant on the occasion of the winter holidays, both for each of the minor children of the employees and for each employee (for each individual person) regardless of the form of the contract (even part time) or even if the employee does not have a basic position in the company, a non-taxable amount in the amount of 150 lei.