Settlement of the amount paid for tourist and/or treatment serices during leave
Settlement of the amount paid for tourist and/or treatment serices during leave
Click here to view in browser  According to the provisions of art. 76 par. 41) lett. d) of the Tax Code, employers can grant the value of tourist and/or treatment services, including transportation, during leave, to their employees and their family members. Under certain conditions, this benefit will not be considered taxable income, so neither salary income tax, nor social contributions will be owed. The following conditions must be fulfilled simultaneously for the tax-free benefit: – The amount granted as settlement for tourist services must not exceed, together with the value of all the benefits listed at art. 76 par. 41) of the Tax Code, the ceiling of 33% of the employee’s basic salary; – The settlement benefit for tourist services must be stipulated in the individual labour agreement or in the internal regulation; – The amount awarded must be within an annual ceiling, for each employee, of up to a gross average salary used for the substantiation of the national social insurance budget for the year when it was granted (for 2024, the maximum amount is 7,567 lei); – The employees who benefit from this cannot also benefit from holiday vouchers; – The employees must submit supporting documents attesting that the leave was carried out and that tourist and/or treatment services were paid. In case the awarded amount exceeds 33% of the employee’s basic salary, or the maximum value of 7,567 lei, the part exceeding this ceiling will be considered taxable benefit in kind and all salary taxes will be applied. In case the employee received holiday vouchers or granting this benefit is not stipulated in the labour agreement or in the internal regulation, the entire amount granted as settlement for tourist services will be considered taxable benefit in kind and all salary taxes will be applied. The amounts representing the value of tourist and/or treatment services, including transportation, during leave, are considered incomes for the month when the statement is approved and must be declared by the employer in D112 (Statement regarding the payment liabilities of social contributions, of income tax and the nominal record of insured persons). Reference sources: · Law no. 227/2015 of the Tax Code, with further amendments and completions. |