In short: the tax-exempt per diem has two ceilings at the same time, and the lower of the two applies. The first is 2.5 times the legal level — that is, 57.50 lei per day in Romania and, for most EU countries, 87.50 euros per day abroad. The second, less well known, caps the total at 3 base salaries prorated to the days on business travel. Anything above the ceiling is taxed as employment income.
For transport companies, the topic has an extra layer compared to any other industry: drivers are not just sent on business travel, they frequently fall under the transnational posting regime of the Mobility Package — and the two regimes are not calculated the same way.
Domestic Per Diem
The reference level is the one set for the public sector by HG nr. 714/2018: 23 lei per day of business travel.
Private employers can grant up to 2.5 times this amount tax-free:
23 lei × 2.5 = 57.50 lei per day, the tax-exempt ceiling for domestic business travel.
More can be granted — the law does not prohibit it — but the difference above the ceiling is included in the base for calculating income tax and social contributions.
Foreign Per Diem
For travel abroad, the legal level is set for each destination country, by HG nr. 518/1995 and its updated annexes. For most European Union countries, the reference amount is 35 euros per day.
35 euros × 2.5 = 87.50 euros per day, the tax-exempt ceiling for most EU destinations.
Note: 35 euros is not a universal amount. The annex to HG nr. 518/1995 sets different amounts by country, and for a trip that crosses several countries, the calculation is done by day and by destination, not as a whole. Check the exact amount for each country before setting your internal policy.
The Second Limit: 3 Base Salaries
This is where most surprises occur during inspections. The 2.5× ceiling is not the only one — there is a second limit that operates in parallel:
The tax-exempt amount cannot exceed the equivalent of 3 base salaries corresponding to the job held, prorated to the days of business travel in that month. The usual calculation:
(3 × base salary) ÷ number of working days in the month × number of days of business travel
The lower of the two limits applies. The practical consequence: a driver with a low base salary who is paid mainly through per diem can exceed the ceiling even while fully complying with the 87.50 euros per day rule. The lower the declared salary, the more restrictive the second limit becomes.
This is exactly the pattern tax authorities look for in transport: minimum wage plus a large per diem.
Business Travel or Transnational Posting?
This is the part that general accounting materials treat superficially, even though for hauliers it decides everything.
Since the Mobility Package came into force, some international trips are no longer simple business travel. Operations involving cabotage and those involving cross-trade place the driver under the transnational posting, which entails additional obligations:
- The host country’s minimum wage for the period concerned — a pay obligation, not an allowance;
- The posting declaration in IMI, filed before the operation begins;
- Posting documents available on request, including the A1 form.
The distinction matters because the per diem cannot replace the pay obligation in the host country. A company that pays the Romanian minimum wage plus per diem for operations that are actually postings has a problem that the per diem level cannot solve.
The specific conditions are detailed in the guides on driver posting and on IMI Declaration, and the types of operations that trigger the regime in the article on cabotage.
The Dispute with ANAF (Romanian Tax Authority), Briefly and Accurately
The topic has a history of litigation worth knowing about, but without jumping to conclusions.
Tax authorities have repeatedly challenged the treatment of amounts paid to drivers, arguing that they should be taxed as employment income. In a case settled with final effect by the Târgu Mureș Court of Appeal in May 2021, the court dismissed ANAF’s appeal, holding that the business travel allowance “is not intended to reimburse transport and meals, but to compensate for the additional effort of working away from home.”
The ruling should not be read as a permanent solution. The tax framework has since changed, and in its current form, business travel and posting allowances, including those specific to transnational posting, are included in the base for calculating tax and contributions for the portion that exceeds the ceilings. A ruling issued on earlier facts and earlier legislation does not guarantee the same outcome today.
What Matters During an Inspection
- Travel orders, including those specific to international transport, which actually prove the business travel;
- Matching between paid days and actual trips — per diem days must be reflected in the documented activity of the vehicle and driver;
- Tachograph data, which objectively shows where the vehicle was and when. Downloading it on time, through tachograph data reading, produces exactly the records that support or contradict a per diem policy;
- Correct classification of each operation: business travel, transnational posting, or exempt bilateral transport.
An ISCTR (Romanian road transport inspectorate) inspection looks at transport documents; a tax audit looks at the consistency between payroll, travel orders, and the routes actually driven. The same tachograph data serves both situations — one more reason to download and archive it systematically, not occasionally. The other obligations checked at the company’s premises are covered in the guide on the ISCTR inspection.
This material is for information purposes only and does not replace tax advice. The ceilings and country rates are updated periodically — check the values in force and your company’s specific setup with an accountant or tax advisor.
Frequently asked questions
How much is the tax-exempt per diem in Romania?
The legal level for the public sector is 23 lei per day, according to HG nr. 714/2018, and private employers can grant up to 2.5 times this amount tax-free, i.e., 57.50 lei per day. Anything above the ceiling is included in the base for calculating tax and contributions.
How much is the tax-exempt foreign per diem?
The legal level is set for each country by HG nr. 518/1995. For most European Union countries, the reference amount is 35 euros per day, so the tax-exempt ceiling reaches 87.50 euros per day. However, the amounts differ from country to country and must be checked in the annex.
What is the second per diem limit?
The tax-exempt amount cannot exceed the equivalent of 3 base salaries corresponding to the job, prorated to the days of business travel in the month. The lower of the two limits applies, so a low base salary automatically reduces the ceiling, even if the daily per diem complies with the 2.5× rule.
Does the per diem replace the host country’s minimum wage?
No. For operations that fall under the transnational posting regime, such as cabotage and cross-trade, the driver is entitled to the host country’s pay. The per diem is a separate allowance and does not cover this obligation.
Is drivers’ per diem taxed?
The portion that exceeds the ceilings is included in the base for calculating income tax and social contributions. Business travel and posting allowances, including those specific to transnational posting, are treated this way under the current tax legislation.
What documents justify the per diem during an inspection?
Travel orders, matching between paid per diem days and trips actually made, tachograph data confirming the routes, and the correct classification of each operation as business travel, transnational posting, or exempt bilateral transport.
