CANCELLATION OF FISCAL OBLIGATIONS
RELATED TO GIFT VOUCHERS

Background

• Until 1^st January 2022, companies used to grant gift vouchers to beneficiaries to promote their sales (beneficiaries being, for example, the sales agents – employees of the companies’ clients). Gift vouchers were treated as income from other sources, taxed with income tax and exempt from payments of social contributions.

• This form of remuneration was in the sights of the tax inspection bodies, which reclassified the gift vouchers as salary income and computed additional tax obligations and related accessories.

• Considering the above, starting 1^st January 2022, gift vouchers may only be given to employees, being forbidden to grant them to other beneficiaries (according to
  the Government’s Emergency Ordinance no. 130/2021, published in the Official Gazette no. 1202/18.12.2021).

• Also, gift vouchers granted by employers/payers to individuals who earn salary-type income are no longer exempt from the payment of social contributions, except for situations when they are granted on Easter, 1^st June (for minor children), Christmas and similar holidays of other religious cults.

The tax news

• In the Official Gazette no. 163/24.02.2023 it was published the Law no. 43/2023 for
  the cancellation of fiscal obligations related to gift vouchers, that entered into force on 27^th February 2023 (“the Law no. 43/2023”).

• According to the Law no. 43/2023, the differences of main fiscal obligations and accessories, determined by the fiscal body through a tax decision communicated to the taxpayers, are cancelled, further to the reclassification from income from other sources to the salary income of the income from gift vouchers obtained by individuals from persons other than their employers, for the period
  26^th May 2006 – 31^st December 2020 inclusive, and unpaid
  until 27^th February 2023.

• The cancellation also applies in the situation where the gift vouchers were granted by the income payer to the employer of individuals to distribute them to their employees on behalf of the income payer.

• For the period prior to 31^st December 2020 inclusive, the fiscal body does not reclassify into salary income revenue from gift vouchers obtained by individuals from persons other than their employers and classified in income from the other sources and does not issue a tax decision in relation to such reclassification.

• The differences of main and/or accessory fiscal obligations, established by the fiscal body through a tax decision communicated to the taxpayer, as a result of the reclassification of the amounts in question, settled by payment, compensation, forced execution or giving payment in accordance with the Fiscal Procedure Code, related to the tax periods up to and including 31^st December 2020, are returned to taxpayers, at their request.

• The limitation period for the right to request restitution for the respective amounts begins to run from the date of entry into force of the law and is 5 years.

• The cancellation of the tax obligations in question is carried out ex officio, by the competent tax body, or at the taxpayer’s request, by issuing and communicating a decision to cancel the tax obligations.

• If before 27^th February 2023, fiscal body issued, but did not communicate the tax decision to the taxpayer, it will revoke the decision and will no longer communicate it, and the tax obligations will be deducted from the payer’s records.

• The application procedure and the methods of restitution of the amounts provided for by this law will be approved by order of National Agency of Fiscal Administration, in 30 days from the date of entry into force of this law.