We explain in this article the correct Romanian tax treatment of company health insurance benefit provided to Romanian employees. As this is a type of employment benefit frequently granted by Romanian companies to their employees, we consider important to clarify which is the correct tax regime to be applied to these types of incentives.
Our article explains both the employee’s taxation, as well as the treatment from the perspective of corporate tax.
Thus, we describe below the tax treatment that should be applicable to the expenses with voluntary health insurance premiums borne by a Romanian company for its own employees, according to the Romanian tax legislation in force.
Our explanations provide clarifications both from the perspective of income tax and mandatory social contributions at the level of employees, and from the perspective of corporate income tax and VAT, at the level of the employer.
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