The more favorable tax treatment of gift vouchers, gifts and holiday vouchers comes to support employers who want to encourage employees with additional benefits.
It is very important to keep in mind that according to the new Fiscal Code, any employee, not only their children or women employees on the occasion of March 8, can receive gift vouchers (of maximum 150 lei) without being taxed with income tax of 16% and without insurance contributions.
Because Easter and summer vacation are close, Contexpert presents the award criteria and tax treatment for each of these benefits.
Note! By 2016, only the gifts in money or in kind, for the benefit of children on the occasion of Easter, June 1st, Christmas and similar holidays of other religions, as well as of the women employees on the occasion of March 8 were not taxable. Instead, gift vouchers, even if they were awarded for such purposes, were considered benefits in money or in kind and were taxed with 16%, however, they were not included in the basis for calculating social security contributions.
Gifts in money and in kind, including gift vouchers
These are not taxable with the income tax of 16% and are not included in the basis for calculating social security contributions if they are stipulated by the labor contract and are offered on the occasion of Easter, Christmas, similar holidays of other religions for the children of the employees and for the employees, of March 8 for women employees and of June 1st for children, limited to 150 lei per person for each of the mentioned events.
Therefore, we remark that all the employees and their children can receive these benefits on the occasion of Easter, Christmas or similar holidays of other religions. In addition, if parents have the same employer, each parent can receive gift vouchers or gifts, both for himself and for his child.
Another important provision is the company has, in turn, a fiscal advantage because these benefits are deductible for profit tax to 5% of the value of the expenditures with personnel salaries. Until this year, the limit was 2%.
Gift vouchers for other occasions
If the gift vouchers are awarded on other occasions than those mentioned in the Tax Code, as mentioned above, then the tax treatment is as follows:
Gift vouchers exceeding the limit of 150 lei
if the value of the gift vouchers exceeds 150 lei, the part that exceeds 150 lei represents taxable income.
For example, if the value is 250 lei:
Award criteria:
Employers, along with trade unions or employee representatives, should establish, in the collective labour contract or in the internal regulations, the awarding rules that should provide:
If the amount awarded to each employee is up to a maximum equivalent to 6 minimum wages annually (6,300 lei at present) it is taxable with income tax, but it is not taxable with social contributions. If the amount exceeds six minimum wages per employee annually it is taxable and with social contributions.
It should be observed that the employees who receive holiday vouchers do not receive bonus vacation or recreation tickets (bilete de odihnă). The award of the vouchers is not conditioned on profit or income in the previous fiscal year.
The countervalue of tourism or / and treatment services
The countervalue of tourism or / and treatment services for employees, including transportation, during the holiday, supported by the employer is non-taxable with the income tax of 16% and is not included in the basis for calculating social security contributions.
Award criteria:
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