In order to motivate employees, as well as to express gratitude for their efforts within the company, employers may decide to grant gifts/bonuses to their employees. Granting these bonuses is an option for employers, as they are not legally obligated to provide them. Regarding the taxation system for these sums in the form of gifts/bonuses, Article 76 paragraph (4) letter a) of the Fiscal Code establishes that “income representing cash and/or in-kind gifts, including gift vouchers, given to employees, as well as those given to their minor children, by the employer for its employees or other individuals, as provided in the employment contract or internal regulations, are non-taxable income.”
However, the law sets a limit on the value of income consisting of gifts. In this regard, the income obtained in this way is not taxable as long as its value for each individual does not exceed 300 lei, in the context of:
- gifts given to employees and their minor children on occasions such as Easter, Christmas, and similar holidays of other religious denominations;
- gifts given to female employees on March 8th;
- gifts given to employees for the benefit of their minor children on June 1st.
Therefore, in addition to the fact that income representing cash and/or in-kind gifts, including gift vouchers, is non-taxable, they are also not included in the monthly basis for calculating social contributions, as long as their value does not exceed 300 lei, and only if this benefit is regulated by the individual or collective employment contract.
In the event that the value of the gifts granted exceeds 300 lei, it is essential to consider that the difference will be subject to mandatory social contributions and income tax, so only within the limit of 300 lei are these incomes non-taxable.
Additionally, employers can choose to provide gifts/bonuses worth 300 lei for both employees who have minor children and for their children. Furthermore, if both parents work for the same company, each of them can benefit from the facility of providing gifts/bonuses.
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Ana Maria Nistor – Attorney at Law