Looking to hire in Romania

Employees must submit current year expenses within 60 days of the expense date or within 30 days after returning from a business trip, whichever is later. Prior year expenses must be submitted by February 1 of the following year. All expenses must be reviewed and approved by the employee's manager, and expenses submitted without the required documentation will be treated as taxable.

Invoices must be issued in the employee's name. For certain expenses, including business travel, a bank statement showing the expense charge must be submitted along with supporting documents. Laptop purchases must show the serial number, IMEI, and MAC address on all tax invoices and receipts. Business travel expenses must be supported by a Business Travel Order Form completed before travel and submitted with invoices and receipts after the trip. A travel log is required for fuel expenses when the employee uses their own vehicle for business travel.

Phone, internet, and coworking costs can be reimbursed, but when no documentation is required these are treated as taxable and reclassified as allowances.

Work equipment and day-to-day office supplies are generally non-taxable when supported by proper tax invoices or receipts in the employee's name. Furniture, printers, and similar items without documentation are treated as taxable allowances.

Business travel expenses are generally non-taxable when incurred for business travel, supported by a Business Travel Order Form, and backed by appropriate invoices, receipts, tickets, booking confirmations, and bank statements. Public transport without documentation is treated as a taxable allowance, and recurring monthly car leasing charges are taxable even if car rental for specific trips can be non-taxable.

Meals taken during business travel and client or partner meals are non-taxable when properly documented and linked to business travel. Groceries without documentation are treated as taxable allowances.

Training, courses, and books are non-taxable when properly documented and, for trainings and courses, supported by a certificate of completion. Gifts and promotional items can be non-taxable within specific limits and occasions, with any excess treated as taxable income.

Under EU rules applied in Romania, employees who work with screens must have the cost of protective eyewear and eye exams covered when a medical exam or health and safety assessment confirms the need. Employees may deduct these costs up to a limit from their own taxes, within an annual cap.

In Romania, certain gifts in cash or in kind, including gift vouchers, can be provided tax-free up to RON 300 per recipient when linked to specific occasions. If the value exceeds RON 300, the excess becomes taxable.

A Business Travel Order Form must be filled, signed, and stamped before employees go on a business trip. It records the types and amounts of expenses, travel dates, destination, and business purpose. After the trip, employees must verify supplier and amount details before submitting the form to accounting. Business travel expenses for travel, accommodation, and meals submitted without this form may be taxed.

Romanian employers must provide a per diem for business trips to cover meals, local transportation at the destination, and incidental expenses, in addition to accommodation and intercity travel costs. Employees qualify when the trip lasts at least 12 hours and is at least 5 km from their workplace. Per diems are non-taxable only within defined fixed and variable limits; any excess is taxed as income.

Romanian tax law does not set a fixed mileage rate for employees using their own vehicle for work. Instead, employees may claim fuel costs related to business use by providing a travel log and fuel receipt. The travel log must show the vehicle category, purpose and place of travel, distance in kilometers, and fuel consumption rate per kilometer. Reimbursed fuel costs are non-taxable, but using an employee's own vehicle for business purposes is discouraged.

Bonuses, including contractual and discretionary payments, incentives, and commissions, are taxed as regular income and subject to applicable social security contributions. Romania applies a flat tax rate with withholding at source, and pay periods that include bonus payments may see higher withholdings.