Beginning January 1, 2023, significant changes were implemented in Tax Form 112, affecting the way companies report various employee benefits and expenses. These changes are crucial for ensuring compliance and optimizing tax obligations. In this article, we'll explore the mandatory information that must be reported, including non-wage income, per diems and value vouchers.
Starting with 01.01.2023, in Tax Form 112 "Declaration regarding obligations to pay social contributions, income tax and nominal records of insured persons" the following information must be declared:
I. Extra-salary income within the limit of a monthly ceiling of 33% of the basic salary
Voluntary pension fund contribution within the limit of 400 euros/year
Voluntary health insurance within the limit of 400 euros/year
Gym membership within the limit of 100 euros/year
Accommodation/rent borne by the employer within the limit of 20% of the minimum salary, i.e. 660 lei/month
Food allowance within the limit of one meal ticket/person/day. Meal tickets are not given in addition
Mobility clause, granted in accordance with art. 25 of the Labor Code for personnel who do not have a stable job. It can be granted within the limit of 2.5% x daily internal travel for public institutions; in July 2024 the value is 57.5 lei/day/person
Tourist services, represents the value of the tourist and/or treatment services, including transport, during the leave period, for its own employees and their family members, granted by the employer, within an annual ceiling, for each employee, representing the level of an average gross salary
All such extra income must not exceed 33% of the basic salary. Example: the gross salary granted 9,000 lei x 33% = 2,970 lei, so all cannot exceed the amount of 2,970 lei. The order and method of awarding is established by internal decision of each company.
Very important:
Amounts granted that exceed this ceiling of 2,970 lei are considered material advantages, for which income tax, CASS and CAS are due.
II. Per diem for work-related travel in Romania or abroad
Consider the following:
Per diems are granted only to staff who have an employment contract or mandate contract.
Per diems are settled based on the travel/delegation order - it is mandatory to draw up the typed form; per diems cannot be granted based on a table in xls format.
Per diems are granted for:
A distance of at least 5 km between the city where the employee works and the place of travel
At least 12 hours between departure time and arrival time. If a fraction of time in a delegation does not add up to 24 hours, the per diem is granted at 50% of the value up to 12 hours and 100% for the period exceeding 12 hours. The non-taxable daily ceiling is granted only if the duration of the trip is longer than 12 hours, considering every 24 hours as a day of work-related travel
The maximum ceiling/month for granting per diems equals three basic salaries. This rule applies to granting both internal and external per diems.
Very important:
If you grant per diem, accommodation, transportation to a person who is not an employee, the amounts granted are considered other income and are taxed at the 10% tax rate according to art. 114 paragraph 2 letter i of the Fiscal Code. The amount granted is the net amount, example: for accommodation and restaurant meals 1,000 lei, tax 1,111 x 10% = 111 lei is due.
III. Value vouchers
Meal tickets, starting from 01.01.2024 the value of a meal ticket is 40 lei
Gift vouchers within the limit of a ceiling of 300 lei/event
Nursery vouchers within the limit of a ceiling of 1500 lei/month
Cultural tickets within the limit of a ceiling of 200 lei/month and 400 lei/event
Holiday vouchers within a ceiling of 6 minimum gross basic salaries
For value vouchers, the employee owes tax at the rate of 10%.
Very important:
The following purchases of goods or services by the company can be considered material advantages and are taxed according to the quality of the person (employee or shareholder):
Clothing, footwear
Cosmetic products
Vacations
Restaurant meals
Pet food
Medical analyses outside the voluntary insurance subscription of 400 euros/year
Toys, electronic games for children
Watches, headphones, purses etc.
If:
status of employee, then all contributions, tax, CASS and CAS are due.
status of shareholder and made profit, it is considered dividends and dividend tax is due.
not status of associate/employee, income tax is due at the rate of 10%, having the obligation to submit the single declaration within 30 days of obtaining this type of income.
Conclusion
The implementation of the new requirements in Tax Form 112 brings with it additional responsibilities for employers in reporting non-wage income, per diems and vouchers. It is essential that every company is well informed and prepared to comply with these regulations, thus avoiding potential penalties and additional interest. Ensuring compliance not only protects the company from legal problems, but also contributes to more efficient management of resources and employee benefits.
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