Amounts received by employees in accordance with the relevant law or labour contract during delegation and secondment to another location within Romania or abroad, for business purposes, as daily allowances but also as any other similar amounts now fall within the cap provided for daily allowance. Thus, any payment which exceeds 2.5 times the amount set by government decision for staff working in public institutions is assimilated to employment income and is included in the taxable base for the calculation of personal income tax and social security contributions. In addition, a corporate tax burden is faced by companies, as payments which exceed 2.5 times the amount set by government decision continue to be non-deductible, too. It appears that this double taxation has been acknowledged by the tax authorities and it is intended to be eliminated in near future.
Expenses related to cars needed and used for business purposes came to everybody’s attention in March. Surprisingly enough, deductibility of depreciation expenses incurred for vehicles with a maximum of 9 seats, including the driver’s seat is now limited to 1,500 lei/month, irrespective of their use. For example, even companies renting vehicles or providing transport services must apply the same rule, despite the fact that the vehicles are their main source of taxable income. It appears that this issue will be addressed by the law for the approval of GO 8/2013, which is currently pending approval by the Parliament.
And this is not all. The VAT deduction right related to purchases of goods or services (and here fuel is the most important item) for which fiscal receipts have been issued can be exercised only if the fiscal receipts (containing all the elements of a simplified invoice) mention the VAT registration number of the beneficiary, written by the electronic cash register. Although this is intended as a measure to benefit taxpayers by reducing their administrative burden, the new provisions have been introduced at short notice, not allowing for a transition period for vendors to adapt their cash registers.