Situation:
A company: ABC SRL, paying corporate tax, gives its employees a 350 lei Christmas gift and intends to give holiday vouchers.
What is the tax regime for Christmas bonuses and under what conditions can the company offer holiday vouchers to its employees?
Solution:
According to the Tax Code, article 76 paragraph (4) letter a), gifts in money offered by employers to their employees, as well as those offered for their minor children on Christmas occasion, are not considered taxable income, as long as their value for each person does not exceed 300 lei.
Thus, under the above conditions, the amount of 300 lei is non-taxable, and the amount of 50 lei is a taxable salary benefit, subject to income tax and compulsory social contributions under Article 76 paragraph (2) letter s) of the Tax Code (income tax), article 139 paragraph (1) of the Tax Code and point 3 paragraph (1) of the Methodological Norms (CAS), article 157 paragraph (1) of the Tax Code and point 11 paragraph (1) of the Methodological Norms (CASS) and article 220^4 paragraph (1) of the Tax Code (CAM).
From the point of view of corporate income tax, the expenses for gifts granted to employees fall within the category of social expenses, deductible in the calculation of corporate income tax up to the 5% rate applied to the value of the expenses with staff salaries, according to Article 25 paragraph (3) letter b) point 3 of the Tax Code.
As regards holiday vouchers, according to the provisions of Article 1 paragraph (4) of OUG 8/2009 on the granting of holiday vouchers, applicable until 1 January 2027, private employers may grant employees amounts in the form of holiday vouchers at a maximum level representing the equivalent of six gross minimum basic salaries per country (6 x 2,550 lei = 15,300 lei for the year 2022), guaranteed in payment, for an employee, during a fiscal year.
Please note that, for 2023, according to HG 1447/2022, starting from 1 January 2023, the minimum gross basic salary per country guaranteed in payment is 3,000 lei per month, therefore it will be possible to grant, in 2023, holiday vouchers worth 18,000 lei (6 x 3,000 lei).
From a tax point of view, holiday vouchers are considered taxable salary benefits, subject to income tax according to Article 76 paragraph (3) h) of the Tax Code, but are not included in the calculation of mandatory social contributions according to Article 142 r) (CAS), Article 157 paragraph (2) (CASS) and Article 220 4 paragraph (2) of the Tax Code (CAM).
If they are granted within the annual limit of 6 gross minimum basic salaries per country (maximum limit), the expenses for holiday vouchers granted to employees will be deductible in the calculation of corporate income tax, in accordance with the provisions of Article 25 paragraph (3) letter c) of the Tax Code.
Legal basis:
– Fiscal Code (approved by Law no. 227/2015, published in MO no. 688 of 10.09.2015), with subsequent amendments and additions;
– Methodological norms for the application of the Fiscal Code (approved by HG no. 1/2016);
– HG 1447/2022 for the establishment of the minimum gross basic salary for the country guaranteed in payment;
– OUG 8/2009 regarding the granting of vacation vouchers, with subsequent amendments and additions