Check an expense's deductibility

An active Professional or Business plan is required for this activity.

For PFA, sponsorship is non-deductible. For PFA personal pensions and insurance, the check shows the EUR 400 annual cap and conditions; a RON deduction also requires statutory conversion. For vouchers, check the specific type and beneficiary. Employee benefits have separate payroll treatment from these personal deductions.

Classify the expense and check its deductible limit

1. In Tools → Tax calculator → Penalties, CAS/CASS and deductibility, choose Deductibility, tax regime and expense category.
2. For classification, the amount may remain blank. For a RON calculation, enter the amount, cap base and limit already used where required.
3. Check documents, business connection and category conditions using the (i) button, then answer questions. For vehicles, exclude depreciation; for business travel, enter transport and accommodation only.
4. Check result, conditions and legal basis. For sponsorship, separate non-deductible expense from tax credit; under microenterprise/standard-income assessment, do not treat the expense as reducing the income/standard-income base.

Calculating the result

1. Deductible business entertainment in RON = min(expense; max(0; 2% × statutory base − entertainment already deducted)). For a company, base = accounting profit + corporate income tax + business entertainment; for PFA, base = gross income − other deductible expenses, excluding business entertainment and private scholarships.
2. Deductible social expenses in RON = min(expense; max(0; 5% × payroll expenses − social expenses already deducted)). Eligible mixed-use vehicle: deduction = 50% × expense.
3. For eligible sponsorship by a corporate-income-tax-paying company: credit cap in RON = min(0.75% × turnover; 20% × corporate income tax before credit). Additional credit in RON = min(sponsorship; max(0; credit cap − credit already used)).

Related resources

• Guides for Tax calculator
• Tools app guides
• Estimate taxes for your activity
• Estimate tax interest and penalties
• Check CAS and CASS for annual income
• View Fluxe prices and plans

Practical example

For business entertainment expense of RON 3,000 and a statutory base of RON 100,000, with no cap used, RON 2,000 may be deducted if conditions are met; the difference is RON 1,000.

Frequently asked questions and solutions

No deductible amount appears?

Enter the required details and check eligibility. Some categories have personal or payroll limits requiring an additional calculation.

Employee insurance exceeds the tax-free cap?

Check payroll treatment; exceeding the employee benefit cap does not automatically make the company's cost non-deductible.