Taxation of meals and meal vouchers in 2022:
According to the current regulations, the Tax Code only regulates meal vouchers as income on which social contributions are not due.
Therefore, according to Article 142(r) of the Tax Code, meal vouchers have a special tax regime in the sense that they are excluded from the calculation of social contributions.
However, meal vouchers are included in the income tax base.
In 2022, if the employer provides employees with food even if, together with the meal voucher, it does not exceed the maximum amount of one meal voucher per day, the tax regime is different.
According to article 76 paragraph (3) letter b) of Law no. 227/2015 on the Tax Code, benefits, in cash or in kind, except those provided for in paragraph (4), received in connection with an activity mentioned in paragraphs (1) and (2) include, but are not limited to: (…) b) accommodation, food, clothing, staff for housework, as well as other goods or services offered free of charge or at a price lower than the market price;
According to the methodological rules of application, when determining the taxable income, the advantages received by the natural person, in accordance with the provisions of Article 76 paragraph (3) of the Tax Code, are also taken into account, such as: (…) b) the provision of food, clothing, timber, firewood, coal, electricity, heat and others;
Thus, the meal served, regardless of the amount borne by the employer for its own employees is a taxable benefit being subject to payroll tax, as stated above, but also to compulsory social contributions as provided for in Article 139 paragraph (1) letter a) for CAS, Article 155 paragraph (1) letter a) for CASS and Article 220 4 paragraph (1) for CAM.
a) We mention that according to article 76 paragraph (4) letter b) and letter c) of the Fiscal Code, the following incomes are not taxable, in the sense of income tax: ( )
b) food allowances granted by employers to employees, in accordance with the legislation in force;
c) food granted by employers to employees, if according to the legislation in force it is forbidden to bring food into the establishment;
According to the methodological rules of application, the category of food rights granted by employers to employees, according to the law, includes:
a) daily food allowances for domestic and international performance sports activity, differentiated by categories of actions;
b) the value of food, food or cash given to athletes to ensure the necessary effort food during the training period;
c) peacetime food entitlements received by national defence, public order and national security personnel, as well as the financial value of the food allowance, when not benefiting from entitlements in kind, granted to military and civilian personnel, police officers and civil servants with special status and civilian personnel of the penitentiary administration system in accordance with the legislation in force;
d) other rights of this nature received according to specific normative acts, such as: daily food allowance for seamen and auxiliary personnel embarked on ships; daily food allowance for collective consumption in budgetary units and in autonomous regions/companies with special specificities; food allowance granted to honorary blood donors; food allowance for collective consumption in public health units and the like.
Therefore, the meal allowance granted to employees is not taxable at the employee level, only in the situations mentioned above.
More specifically, if the above conditions are not met, the meal given to employees will be entered on the payroll with the amount of the benefit, withholding each employee’s contributions and payroll tax. In addition, it is included in the tax base for the contribution to the work insurance scheme (CAM).
It should be noted that meal vouchers are not linked to or conditional on the meal allowance and do not replace each other.
Alternative to meal vouchers from 2023:
According to OG 16/2022 for the modification and completion of Law no.227/2015 on the Fiscal Code, repeal of some normative acts and other financial-fiscal measures, published in MO 716/15.07.2022, starting from January 2023, employers will have an alternative to the classic meal vouchers, namely the possibility to provide food at the workplace, benefiting from fiscal facilities, granted under certain conditions.
Thus, according to OG 16/2022, “the value of the food provided by the employer for its employees, individuals who earn income from wages or similar (…), within the maximum amount, according to the law, of one meal voucher/person/day” will be exempt from both income tax and social contributions for pensions, health and labour.
Please note that according to Law 187/MO 613 of 22 June 2022, the value of the meal voucher for each day worked has been increased to 30 lei. The new value applies from 1 July 2022.
Thus, the granting of this benefit, starting with the income for January 2023, must be mentioned in the internal regulations or in the individual employment contract.
However, it can only be paid to employees who actually work at the employer’s premises. Those working remotely (teleworking or home working), those on sick or rest leave and those who are delegates are expressly excluded.
At the same time, it is clearly stated that food insurance at work, with this favourable tax treatment, is an alternative to meal vouchers.
In OG 16/2022, it is stated that “In determining the monthly non-taxable limit (33%), the number of days in the month on which the individual works as a teleworker or homeworker or is on rest/medical/delegation leave is not taken into account. Food means food prepared in own establishments or purchased from specialised establishments. The provisions do not apply to employees who receive meal vouchers in accordance with the legislation in force;”
We note that as of January 1 there is a 33% monthly cap on non-taxable benefits, including food as an alternative to meal vouchers.
Thus, we are talking about two benefits with a favourable tax treatment, but with some differences. In the case of meal vouchers, employers only have to pay income tax, while in the case of food at work, employers pay no tax (as long as it is within the daily limit per employee). On the other hand, vouchers can be used in restaurants or shops, giving employees more freedom to choose what to do with the money they have at their disposal.
The preferential tax treatment is a limited exemption from payroll taxes on benefits – income tax (10%) and pension (25%), health (10%) and labour (2.25%) contributions.
We mention that on the special list of benefits, in addition to the food allowance, there are also the following:
accommodation and the cost of rent for accommodation or living quarters made available by employers to their employees, up to a monthly limit of 20% of the gross minimum basic salary per person;
additional benefits received by employees under the mobility clause, up to a maximum of 2.5 times the legal level set for the secondment allowance for staff of public authorities and institutions;
the cost of tourist and/or treatment services, including transport, during the holiday period, for own employees and their family members, up to an annual limit , for each employee, representing the level of an average gross salary;
contributions to a voluntary pension fund and those representing contributions to voluntary pension schemes, borne by the employer for his own employees, up to an annual limit of EUR 400 per person;
voluntary health insurance premiums and medical services provided in the form of subscriptions, borne by the employer for its own employees, so as not to exceed the equivalent in lei of 400 euro per person per year;
the amounts granted to employees who work remotely, up to a monthly limit of 400 lei corresponding to the number of days in the month in which the individual works remotely.
Legal basis:
-Fiscal Code (approved by Law no.227/2015, published in the Official Gazette no.688 of 10.09.2015), with subsequent amendments and additions;
-Methodological Norms for the application of the Tax Code (approved by HG no.1/2016);
-Government Order 16/2022 for the amendment and completion of Law no. 227/2015 on the Fiscal Code, repeal of some normative acts and other financial-fiscal measures;
-Law 187/2022 for amending and supplementing Law no. 165/2018 on the granting of vouchers.