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Romania - Important Pointers related to Expense Reimbursement - For employers
Romania - Important Pointers related to Expense Reimbursement - For employers
Kyro Guinto avatar
Written by Kyro Guinto
Updated over a week ago

Why do your Romanian employees need to submit the proofs under the name of local Multiplier entity - “Multiplier Technologies MTR SRL”?

If the expense is not addressed in the name of registered company “Multiplier Technologies MTR SRL”, the expense is considered benefit in kind and is taxable. This is as per the laws of Romania.

What happens if the proofs are not addressed in the name of local Multiplier entity?

Let us understand with an example. Your employee “John” in Romania has added an expense “Laptop Purchase” for RON 500, where the supporting document is under the name of ‘John’.

Since this expense is not addressed under the name of Multiplier Romania entity, the invoice we will generate for you, will be grossed up based on the tax amount. Lets assume the tax amount is RON 150. Then we will generate an invoice for RON 650 for Laptop Purchase. And Once the invoice is paid, we will pay RON 500 to the employee.

However, if the supporting docs was addressed to Multiplier Romania entity, then we will invoice for only RON 500 and NOT RON 650.

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