transportfirma in roemenie - transport company romania
Daily pay expenses deduction according to law 168 of 2013
The governement raised the daily allowance free from social taxes from 35 euro in Belgium, Holland and other countries. This is a competitive advantage for Romanian based transport companis.
Law no. 68/2013 published in the Romanian Official Gazette 310 of May 29th, 2013, revoked the provisions that limit the right to deduct daily pay within the limit of 2,5 times the legal limit fixed for public institutions, namely art. 21 paragraph (3) letter b of Fiscal Code. The elimination was necessary for allowing the full deduction of expenses with the daily pay offered to employees in case this limit is exceeded.
Through the enforcement of this provision, and available rules starting from February 1st, which laid down that daily pay, over the limit of 2,5 times the legal limit fixed for employees in public institutions, is subject to income tax and is included in the monthly calculation base for mandatory social contributions, the income taxpaying entities were disadvantaged, arriving at double taxation, for the amount of the daily pay that exceeded legal limit, the company supports a 16% tax, given the fact that this expense was considered non-deductible.
Thus, starting from July 1st 2013, the provision in art. 21, paragraph 3), letter (b) of Fiscal Code, will be revoked and the rules regarding daily pay are the following:
Read the pdf file in anexa for more information.