News Flash No.1/2024
Last Dec. 17, 2023, Law No. 191, converting Decree-Law No. 145/23 (so-called: Advances Decree), went into effect.
The main changes in labor matters are summarized:
Fringe benefits on loans granted to employees
We want to pay special attention to the change in tax regulations regarding loans granted by employers to employees, in view of the heavy burden that the previous regulations placed on employees and caused by the sudden rise in reference rates ordered by the ECB over the past year.
In Article 3 of Decree No. 145/23, after Paragraph 3, Paragraph 3-bis was added, amending Article 51 Paragraph 4 letter b) of the TUIR, whereby in case of granting loans to employees "50% of the difference between the amount of interest calculated at the official reference rate in force on the due date of each installment or, in the case of fixed-rate loans, on the date the loan is granted, and the amount of interest at the rate applied on the same is assumed".
Accordingly, for the calculation of any fringe benefit: