Tax treatment of holiday gifts

1. Maximum non-taxable amount

According to the legislation in force, income representing gifts in cash and/or in kind, including gift vouchers, offered to employees on certain holidays, as well as those offered to their minor children, are non-taxable, provided that the value granted to each person does not exceed 300 lei for each event (e.g., Easter, June 1, Christmas, etc.).

This ceiling applies separately for each employee and each of their minor children. Example: an employee with two minor children can receive a total of 900 lei tax-free: 300 lei for themselves + 300 lei for each minor child.

2. Tax treatment: What taxes are payable?

The method of taxation depends strictly on compliance with the 300 lei ceiling:
• For amounts up to 300 lei: the amount is considered non-taxable. No income tax (10%) or mandatory social contributions (CAS 25%, CASS 10%, CAM 2.25%) are due.
• For amounts exceeding 300 lei: the part exceeding the ceiling is treated as salary income and will be included in the calculation basis for all the aforementioned salary taxes.

3. Conditions for granting and required documents

In order for these benefits to be deductible and tax-exempt, the employer must comply with the following conditions:

Provision in internal documents:
The granting of gifts must be mentioned in the Collective Labor Agreement, Internal Regulations, or other internal policies. In the absence of such provisions, the amounts may be considered salary benefits and will be fully taxable, even if they fall within the ceiling of 300 lei.

Occasion for granting:
Tax benefits for gifts offered to employees apply only on certain holidays expressly provided for in the Tax Code, such as Christmas, Easter, June 1 (for children), and March 8 (for female employees).

The granting of these benefits at other times or on other occasions (e.g., birthdays, team-building, name days, etc.) does not benefit from the same favorable tax regime and attracts full taxation of the amounts granted.

Supporting documentation:
• Nominal list of employees (and, where applicable, minor children) who receive gifts.
• Copies of children’s birth certificates to justify the amounts granted to them.

4. Gift vouchers vs. gifts in cash or kind

As a result of recent legislative changes, gift vouchers may only be offered to employees (a separate tax regime applies to promotional or marketing campaigns aimed at third parties). They are subject to the same exemption ceiling of RON 300/person/event.

If gifts in kind (products) are offered, it is important to note that deductibility may be limited. Expenses for gifts offered to employees fall under the category of social expenses and are deductible when calculating limited income tax, up to a limit of 5% of the value of personnel salary expenses.