Law 227/2015 regarding the Fiscal Code provides, at the art. 76 para. (4), two situations when the amounts paid to the employees for the settlement of their transport to and from the workplace are not considered taxable revenues from salaries and assimilated to salaries, respectively:
- The employees reside in the same city where the workplace is situated. In this case, the individual labor contract or the internal regulations should provide the settlement of these expenses.
- The employees reside in a city other than where their place of work is. In this case, the settlement of these expenses is not mandatory to be provided in the individual labor contract or the internal regulations. However, the employees can not simultaneously benefit from the service home or the settlement of the rent paid for the house rented by them.
The employees who settle transport expenses must prepare expense reports to which supporting documents must be attached (fiscal receipts for fuel expenses, public transport subscriptions, invoices, or fiscal receipts for train subscriptions, metro cards, or tickets, as the case may be).
If the employees settle fuel expenses, the amount paid must be based on a calculation depending on the distance traveled to or from the workplace and the average car consumption. Also, the settled amount will vary monthly depending on the days the employees are present at the company’s premises.
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