Today, the 8th of March, we are celebrating the International Women’s Day. Originally called the International Working Women’s Day, we continue the tradition nowadays in Romania as well, just as in other 59 countries around the globe.
In Romania we are used to call it Mother’s Day, an occasion on which all the children prepare at least a nice letter or even a gift to show their love and gratitude towards their mothers.
But this day is also an opportunity for Romanian employers to offer some special benefits to their employees. Here is what you should know about them.
INTERNATIONAL WOMEN’S DAY : FREE OF TAX INCENTIVES FOR LADIES
Not only mothers are celebrated, but all women. therefore, a Romanian company can grant some incentives, consisting in presents, gift vouchers or even bonuses. It’s the perfect way to mark this day in a special way and to show to their female employees a recognition of their efforts.
The Romanian Fiscal Code (article 76 line 4-a) states that the amount of 150 lei/person ( approx. 33 €) can be granted to the female employees for this occasion, income tax free and not liable to social security contributions. The employer can choose to offer this amount in cash, as presents or gift vouchers. Should it eventually exceed the amount of 150 lei/person, the difference will be taxable as a salary (income tax 16% plus social contributions).
This expense is also deductible from the tax on profit, being considered as a social expense. Be aware that the total amount of deductible social expenses should not exceed the limit of 5% of the total expenses with salaries (for one fiscal year).
As a conclusion…
According to the Romanian Fiscal Code, the advantage of showing this small sign of appreciation and motivation towards female employees is free of tax, as follows:
- For the employee : 150 lei/person – income tax free and social contributions free;
- For the employer : social contributions free, socially deductible expense (with the cap of 5% from the total personnel expense).
- What is above 150 lei/person is due to all social security contributions and income tax, as a simple bonus.
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