Romania: Tax differences between meal vouchers and direct food benefits

In Romania, employers can provide food benefits through either meal vouchers or direct meal provision, each carrying distinct fiscal implications for both the company and the employee.

Meal vouchers are subject to a 10% health insurance contribution (CASS) and a 10% income tax. The tax is calculated by first deducting the CASS from the total value and then applying the income tax to the remaining amount. For example, a monthly benefit of 945 lei (based on a 45 lei daily maximum for 21 working days) results in approximately 180 lei in taxes, leaving a net value of about 765 lei for the employee. These vouchers offer the employee flexibility in choosing where and what to eat.

Alternatively, if an employer provides meals directly, the benefit may be non-taxable for the employee if specific fiscal conditions are met. Unlike vouchers, direct meals do not diminish the net value through social contributions. However, direct meals count toward the overall ceiling for non-taxable benefits. If a company provides other perks like medical subscriptions or optional pensions, exceeding this common limit changes the tax treatment of the excess amount. While direct meals preserve full value, the employee cannot convert them into cash.