For benefits in kind, compulsory social contributions and income tax are paid. Exceptions to this rule, the benefits mentioned as not being advantages, in Chapter III of the Fiscal Code, plus those mentioned in art. 76, para. ( 4 ) of the Fiscal Code.
Among these, we mention:
- income representing gifts in kind, including gift vouchers, offered to employees, as well as those offered for their minor children;
- the value of tourist and / or treatment services, including transport, during the leave, for own employees and their family members, granted by the employer for own employees or other persons;
- voluntary health insurance premiums, as well as medical services provided in the form of a subscription, borne by the employer for its own employees, so that, at the level of the year, not to exceed the equivalent in lei of the amount of 400 euros, and monthly, to be included in the ceiling of 33% of the gross salary.
An important tax aspect is that a number of cash or in-kind benefits received, including by directors, in connection with the activity carried out in companies, refers to the following:
- the use of any property, for personal purposes, including a vehicle of any kind, from the company’s assets or leased from a third party, except for round-trip travel from home or residence to work or place of business;
- accommodation, food, clothing, domestic staff, as well as other goods or services offered free of charge or at a price lower than the market price;
- non-reimbursable loans;
- subscriptions and the cost of telephone conversations, including telephone cards, for personal purposes;
- travel permits on any means of transport, used for personal purposes;
- insurance premiums, as well as medical services provided in the form of a subscription paid by the holder to his own employees or another beneficiary of income from salaries and assimilated to salaries, at the time of their payment, other than mandatory;
- valuable tickets in the form of gift vouchers, meal vouchers, holiday vouchers, nursery tickets and cultural tickets, granted according to the law;
- expenses incurred by employers / payers for professional training and development of employees, administrators established according to the constitutive act, the administration / mandate contract.
Consequently, any benefit in kind granted to administrators appointed under the articles of association or to the general meeting of associates or shareholders is, from a fiscal point of view, taxable advantage subject to the usual tax treatment applied to the remuneration received by them.
The income tax due is calculated by applying the 10% share to the net income determined as the difference between the gross allowance and the compulsory social contributions due, according to the calculation method regulated by art. 78 para. ( 2 ) letter b ) of the Fiscal Code. The remuneration of the directors of the companies is also included in the calculation basis of the social insurance contribution, in a share of 25%, according to art. 139 para. ( 1 ) letter d ) of the Fiscal Code, of the social health insurance contribution, in a share of 10%, according to art. 157 para. ( 1 ) letter e ) of the Tax Code, and of the employment insurance contribution, in a share of 2.25%, according to art. 220 ^ 4 para. ( 1 ) letter d ) of the Fiscal Code.