New salary benefits with favourable tax treatment can be granted to employees: Law no. 34/2023
16 Jan 2023
The takeaway
Law no. 34/2023 completed the list of salary benefits with favourable fiscal treatment that employers can offer to employees. As of February 2023, the value of subscriptions for the use of sports facilities borne by employers for their own employees is exempt from personal income tax and social contributions within the limit of the RON-equivalent of EUR 400/year/employee, without exceeding 33% of the basic salary of the employee introduced by OG no. 16/2022. Amounts incurred for the same purpose by employees will be deductible within the same limits for determining taxable salary income.
In detail
We present the changes made to the Fiscal Code by Law no. 34/2023.
The value of subscriptions for the use of sports facilities offered by suppliers whose activities are included in CAEN codes 9311, 9312 or 9313, and the value of subscriptions offered by the same supplier acting in own name or as an intermediary, which include both medical services and the right to use the sports facilities, borne by the employer for its own employees, are exempt from personal income tax and social contributions up to the RON-equivalent of EUR 400 euros per year for each employee. The application of this tax treatment is conditional on being within, together with other benefits provided by the Fiscal Code, the monthly limit of 33% of the employee’s basic salary.
If these amounts are borne by the employees, they are deductible when determining the taxable salary income within the limit of the RON-equivalent of EUR 400 annually. The subscription can cover services provided to the employee and/or any dependent.
To determine the annual net income, individuals carrying out independent activities can deduct these expenses incurred for the taxpayer’s personal purposes up to the RON-equivalent of EUR 400 euros per year per person.
Source: [Law no. 34 amending and completing of the Fiscal Code, published in the Official Gazette no. 36 dated 12 January 2023]
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