PwC Moldova: New Regulations on Employee Business Travel

PwC Moldova: New Regulations on Employee Business Travel

• 04.10.2017

In brief

A Government Decision amending and supplementing the Regulation applicable to business travel of Moldovan entities’ employees has been published (“Regulation”).

In detail

According to the new provisions, the Regulation no longer regulates expenses for business travel of people performing work and services based on an agreement, but extends its scope to people who practice volunteer activities in accordance with the law.

The method and terms of travel 

When travelling to foreign countries, the date of border crossing is determined in accordance with the travel documents, not just with the notes in the passport. Clarifications have been added regarding travel expenses for arrival and departure days. 

Maintenance of salary

According to the amendments, the Regulation provides for the maintenance of the monthly salary and not the average monthly salary for the period of business travel. 

Per-diem allowance payments

If an event organiser compensates the employee for expenses incurred, confirmatory documents are required (invitation, electronic letter, other documents issued by the organiser). If the arrival and/or departure day differs from the period for which the organiser provides financial means, the employer pays the per diem for the other days.

For business travel to more than one country, the per diem allowance paid on the day of travel from one foreign country to another is 50% of each country-specific limit. Payment of the salary supplement instead of per diem allowance is also applicable to employees who carry out work in the field of information technology, electronic and postal communications. 

Other expenses related to the business travel

Employee costs for obtaining a passport are not refunded. Other travel-related expenses are compensated even if the business travel has been cancelled for reasons unrelated to the employee. The per diem allowance rates and accommodation limits for business travel on the territory of the Republic of Moldova have been increased.

Other provisions

The responsibility for the accuracy of the information in the primary documents rests with the travelling employee. 

[Source: Government Decision no. 740 dated 18 September 2017 on the amendment and supplement of Annex no. 1 to Government Decision no. 10 dated 5 January 2012, Official Monitor no. 340-351 (6263-6274) dated 22 September 2017]

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PricewaterhouseCoopers (PwC) Moldova

PwC helps organisations and individuals create the value they’re looking for. We’re a network of firms in 157 countries with more than 208,000 people who are committed to delivering quality in assurance, tax and advisory services. This network structure provides PwC member firms with the flexibility to operate simultaneously as local businesses, but also on a global scale, creating a platform through which member firms share knowledge, skills and resources and delivery services of consistently high quality to international and local clients. PwC started operations in Moldova in 1996. It has continuously expanded the scope of its services and currently offers a full range of professional services to both international and Moldovan enterprises. Overseen by 16 partners and employing over 600 specialists and support staff, PwC operates in Romania and Moldova from a network of four offices in Bucharest, Timisoara, Cluj-Napoca, Constanta and Chisinau.