Non-taxable domestic per diem

Non-taxable per diem is an important benefit for both employees and employers, facilitating the coverage of travel expenses without being subject to taxation. In 2025, the applicable legislation maintains certain limits and clear rules for granting it, and complying with these provisions is essential to avoid tax issues.

What is per diem and who is eligible to receive it?

Per diem is an allowance granted to employees who travel for business purposes, either domestically or abroad. Its purpose is to cover accommodation, meals, and other incidental expenses related to the trip.

Employees who are eligible to receive per diem include:

• Employees who travel as part of their individual employment contract;
• Administrators and directors of commercial companies;
• Individuals carrying out independent activities, under certain conditions.

What are the non-taxable per diem limits in 2025?

According to the updated tax legislation, for the per diem to be considered non-taxable, it must fall within the following limits:

• Domestic per diem: 57.50 lei/day
• Foreign per diem: It varies depending on the country, and the amount is non-taxable up to 2.5 times the legally established per diem level. You can find more information about the foreign per diem here.

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Any amount that exceeds these limits is subject to taxation and social contributions.

Rules for granting non-taxable domestic per diem

To be considered non-taxable, the per diem must meet the following conditions:

1. The travel must be carried out for business purposes and properly documented through a travel order or other supporting documents.
2. The duration of the trip must be at least 12 hours in order for the daily per diem to be granted.
3. The amount must not exceed 57.5 lei per day.

How is the per diem granted and justified?

Employers must follow certain procedures in order to legally grant non-taxable per diem:

1. Preparation of the travel order – It must include clear details regarding the destination, duration, and purpose of the trip.
2. Per diem payment – It can be made either before the trip or upon return, according to the company’s internal policies.
3. Retention of supporting documents – Invoices, fiscal receipts, or other relevant documents must be archived for potential tax audits.

What happens if the non-taxable per diem limits are exceeded?

If the employer grants a per diem above the non-taxable limits, the difference is considered salary income and is subject to:

• Income tax – 10%
• Social security contribution (CAS) – 25% +Health insurance contribution (CASS) – 10%

To avoid such additional costs, it is essential for employers to comply with the legal limits and conditions.

Advantages of Non-Taxable Per Diem:

Granting non-taxable per diem offers multiple benefits:
✔️ Reduction of tax costs for employers;
✔️ Employee motivation by covering travel expenses;
✔️ Compliance with legislation without the risk of penalties.

If you need assistance with the proper management of per diem payments, our team of accounting specialists can support you with:
✅ Accurate calculation and granting of per diem;
✅ Compliance with all tax obligations;
✅ Avoiding risks associated with tax audits.

Non-taxable per diem is an essential benefit for both employees and employers, but it must be granted in strict compliance with legal provisions. To avoid errors and optimize costs, make sure you stay up to date with current regulations.

If you need support with per diem management, feel free to contact us. And if you’re interested in HR topics, you can also read more about another subject in this category here.