Non-taxable teleworking support
From 1 January 2021, employers may give grants to teleworking employees, to cover utilities’ expenses (such as electricity, heating, water, data subscription) and purchase of office furniture and equipment. This grant, if given, should be included in the monthly payroll. The key points to note are that the grant:
- is, arguably, non-mandatory but further analysis must be done (in line with developments in labor law);
- is paid by the employer only, with no state support available;
- is deductible for corporate income tax purposes;
- is a non-taxable benefit, up to RON 400 gross (approx. EUR 80) per month - so a maximum of RON 400 is also the net income for the employees;
- does not require documentary evidence from the employees;
- requires the non-taxable threshold to be correlated / pro-rated with the actual number of days the employee is teleworking; and
- may be subject to different limits set by the employer in their internal regulations or as agreed in the employment contracts, but at least RON 400 gross will be non-taxable.
The implementation of the teleworking regime needs to be documented, as per the specific legislation, in order for an employer to be able to apply the more favourable tax treatment in relation to any grants given to employees.
Other tax implications / exemptions
From 1 January 2021, any expenses incurred by employers in relation to the epidemiological testing and vaccination of employees, which are aimed at stopping the spread of disease, are exempt from income tax and social security contributions.
Increase of the national wage
The Romanian Government plans to increase the standard national minimum monthly gross salary for all sectors from RON 2,230 (approx. EUR 460) to RON 2,300 (approx. EUR 480). In the meantime, the special national minimum monthly gross salary (for employees with a college degree and at least 1 year’s service) remains unchanged at RON 2,350 (approx. EUR 490).