Are you working for a Romanian company and have to travel frequently? If you answered yes to both of these questions, we want to share some exciting news: the delegation allowance will increase for private entities.
This means that you can now enjoy even more financial support when traveling for business purposes. Whether you’re attending conferences, meeting clients, or exploring new markets, this increased delegation allowance will help cover your expenses and make your business trips more comfortable and rewarding. Take advantage of this opportunity and maximize your productivity while experiencing the vibrant business environment in Romania. Don’t miss out on this valuable benefit that can enhance your professional journey.
Get ready to pack your bags! Business travel just got a lot more affordable
As of the 1st of April 2023, the non-taxable delegation allowance will increase from 20 lei/day to 23 lei/day. This change, announced in the latest update from Order 1235/2023, applies to all entities except those of the state. In addition to this, the allocation for accommodation and detachment allowance has also been revised, making business travel more affordable than ever before.
We know this may not seem like a lot at a first glance, but if you put together the daily allowance, you’ll definitely see the difference.
Private entities can now grant a maximum non-taxable allowance of 57.50 lei/day for each day of delegation. This change was made through Order 1235/2023, which also increased the accommodation allowance to 265 lei and the detachment allowance to 23 lei.
This comprehensive revision of the delegation allowances demonstrates the commitment of Romanian authorities to support and facilitate business travel, enabling professionals like you to focus on your core objectives without unnecessary financial burdens. By taking advantage of these revised allowances, you can make the most of your business trips, optimize your budget, and allocate resources where they matter the most.
A Win for Employees and Employers
However, it’s important to note that each company establishes the value of the per diem granted to employees based on internal criteria or specific budgets. While it’s exciting to have a higher non-taxable allowance, it’s crucial to keep in mind that the value cannot exceed 57.50 lei/day. This is to ensure that the second limiting criterion, which is the level of the employee salary, is also taken into account. So, if you’re a business traveller or an employer who sends employees on delegation, this is definitely great news for you. Just remember to keep track of the non-taxable value and stay within the set limits.
What is the process for establishing the non-taxable threshold?
According to the Romanian fiscal code, the non-taxable threshold is established as follows:
“(i) In the country, 2.5 times the legal level established for compensation, by government decision, for the personnel of public authorities and institutions, within the limit of 3 base salaries corresponding to the job occupied;
(ii) Abroad, 2.5 times the legal level established for the non-taxable delegation allowance, by government decision, for Romanian personnel sent abroad for temporary missions, within the limit of 3 base salaries corresponding to the job occupied.”
What does it mean for you?
- You’ll be able to keep up with your daily expenses;
- You’ll enjoy better accommodation during your travels;
- You’ll have access to higher-quality services;
- You’ll spend less personal money overall.
All things considered, your travel expenses are about to get a lot more manageable. With the increased delegation allowance for private entities, you can now embark on your business trips with peace of mind, knowing that your financial support has been boosted. Say goodbye to the worries of overspending or straining your budget while traveling for work. The added flexibility and resources provided by the enhanced delegation allowance will allow you to focus on your professional goals and make the most out of your business travel experiences Happy travels!
Driven by passion and shaped by years of experience in global mobility, we’re ready to take the leap with you. Even if that leap means you’re bringing in your first employee from abroad, or you’ve already been through this process countless times.