How does mileage allowance work in Romania?
- Fuel costs: are the main expense, reflecting the gasoline or diesel used over the number of kilometres for work trips
- Vehicle wear and tear: is the increased depreciation on the car due to business use
- Maintenance and repairs: costs related to keeping the car running smoothly for business travel
- Vehicle taxes and insurance contribution: a small part of the annual fees and insurance premiums may be factored in
- Tyre wear: the allowance might consider the extra wear and tear on tyres due to business miles
Company cars
Private cars
- Personal travel: the reimbursement is meant to cover business trips, not commutes or personal errands
- Parking fees, tolls and other miscellaneous expenses: these are usually the responsibility of the employee
- Depreciation and wear and tear: the reimbursement doesn't account for the decrease in the car's value due to business use
- Fuel exceeding average consumption: if the employee uses more fuel than the calculated average for the trip, they might need to cover the difference
- Maximum mileage limits: there might be a cap on the total number of kilometres reimbursed per period
- Specific car types: reimbursement might not apply to all car categories (e.g., luxury vehicles)
High-value vehicle tax
- Applies to cars registered in Romania with a purchase value exceeding RON 375,000 (approximately EUR 75,000)
- Tax rate: 0.3% applied to the difference between the taxable value and the threshold
- Due for a five-year period starting from the year of purchase
- Payable by December 31st of each calendar year
What is not included in the mileage allowance in Romania?
- Travel expenses: these expenses cover the costs of various modes of transportation used during business travel, such as flights, taxis and public transport and are reimbursed separately from mileage allowances
- Incidental expenses: these are additional costs that may arise during business travel, such as communication fees, parking charges and tolls and are reimbursed separately from the mileage allowance
- Daily allowance: employees on business trips within Romania are entitled to a daily meal allowance of RON 57.50. This allowance covers meals and other minor expenses without needing additional receipts. However, it's important to note:
- Calendar year limit: the 60-calendar days limit for business trips with daily allowance applies per calendar year (January 1st to December 31st).
- Tax Implications: if the total daily expenses on a business trip exceed the RON 57.50 (€12) allowance**, the exceeding amount becomes subject to income tax and social contributions.
What is not included in the commuting allowance in Romania?
- Companion expenses: expenses incurred for travel and stay arrangements for family members, spouses, or friends accompanying the employee on a business trip
- Personal travel: the allowance is for work commutes, not personal trips
- Non-business purchases: any non-business-related purchases made by the employee during a business trip, such as buying gifts or souvenirs
- Leisure activities: costs associated with leisure activities or entertainment during the commute, such as visiting a gym or a cinema
How can I file a mileage allowance claim in Romania?
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Frequently asked questions about mileage allowance in Romania
Do standard mileage rates for reimbursement apply to public transport as well as motor vehicles in Romania?
Is there a standard mileage reimbursement rate for the European Union (EU)?
Which countries don’t have standardised mileage rates like Romania?
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