Holiday vouchers
Employers have the possibility to give employees holiday vouchers. These are granted in the amount of a maximum of 6 gross minimum wages per year for each individual employee for whom it is decided to grant a holiday voucher. Holiday vouchers are valid for 1 year and can only be used in Romanian tourism. The amounts corresponding to the holiday vouchers are fully deductible for the employer when calculating the corporate income tax up to a maximum of 6 gross minimum wages per economy for each employee, during a fiscal year.
According to the tax provisions, income tax of 10% is withheld from the amount granted in the form of vouchers / holiday cards and from the year 2024 onwards, social security contributions are also due.
Holiday vouchers can only be used in Romania and only in connection with affiliated units. Their list is published by the National Tourism Authority (http://turism.gov.ro/agentii-de-turism-si-structuri-autorizate/).
Cash gifts
Gifts offered by employers to employees, as well as those offered for the benefit of their minor children, on the occasion of Easter, June 1, Christmas and similar holidays of other religious denominations, as well as gifts offered to employees on the occasion of March. 8, are non-taxable to the extent that their value for each individual, on each of the above occasions, does not exceed 300 lei.
They are also not included in the monthly basis for calculating social security contributions, as long as their value for each individual, on each of the above occasions, does not exceed 300 lei.
The part exceeding the 300 lei limit represents income from wages and salaries and is included in the basis for calculating compulsory social security contributions and income tax.
Contributions to a voluntary pension fund
Contributions made by the employer on behalf of the employee to Pillar III (voluntary pension) are allowed as deductible expenses in the calculation of taxable profit, up to the amount of 400 euro/tax year for each employee.
This means that the employer does not pay tax on these voluntary pensions if they are within the limit of 400 euro/employee tax year. If in a tax year the contributions for employees’ voluntary pensions exceed 400 euro, from the moment this limit is exceeded, the amounts are considered benefits in kind, will be assimilated to salaries and will bear all the employee and employer contributions and income tax.