How per diem is calculated and where the tax-free cap sits
For domestic travel, the reference level is the one set for public institutions; for private employers, the allowance is tax-free up to 2.5 times that legal level, and since 2023 an additional monthly cap tied to the base salary applies, under the Codul fiscal / Legea nr. 227/2015 (the Romanian Fiscal Code). For foreign travel, the reference is set per country. 4expenses keeps these thresholds as configurable settings and calculates, for every trip, how much of the per diem is tax-free and how much exceeds the cap - so the taxable portion is identified before payroll runs, not discovered during a review.
Partial days, the classic trap in travel expense reports
Most per diem errors happen on the first and last day: leaving in the afternoon and returning in the morning are not treated the same as a full day, and the rules differ between domestic and foreign travel. The application applies those rules automatically, based on the departure and arrival times entered, and shows exactly how it arrived at the number of days - which puts an end to the back-and-forth between employee and finance over 'I was owed one more day'.
Mileage in a personal car and VAT on fuel
When an employee uses their own car, reimbursement is normally per kilometre driven, based on an internal rate. When they use a company car and buy fuel, the deduction rule kicks in: for vehicles not used exclusively for business, deductible VAT is limited to 50% (art. 298 of the Codul fiscal / Legea nr. 227/2015), and the expense is treated accordingly. 4expenses flags the vehicle type and the way it is used from the outset, so the export to accounting already carries the information needed for the correct treatment.
One file per trip, not scattered receipts
Every document belonging to a trip - the travel order, the per diem, the receipts, the accommodation invoice, the tickets - stays grouped together. In practice that means you can answer 'what did the visit to client X cost us?' without reconstructing anything, and at an audit you present a coherent file instead of a set of seemingly unrelated expenses.
