In general, for fringe benefits the tax assessment of which is not regulated by the Income Tax Act‘s special provision, as from 1 January 2022 it will be possible to apply an exemption from taxation and related social and health insurance contributions on the employee's side in the maximum amount of € 500, if the provision of the benefit will not be a tax deductible expense of the employer.
The provision of a fringe benefit exceeding the amount of € 500 will represent the employee's taxable income. If the provision of benefit will be agreed in an employment, collective or other similar agreement or internal procedure, it will be considered as tax deductible expense for the company.
Employers may also provide other types of benefits than those described above for which the tax treatment from the employee's or the employer's perspective may not be unambiguous. In case of your interest, we will be happy to provide you with our assistance in their deeper analysis.
Employers use fringe benefits to motivate employees to perform better as well as to differ themselves from the competitors. What does the provision of various fringe benefits mean for the employer and employee in terms of taxes? What changes are coming into force in 2022 in fringe benefits?
As one of fringe benefits, the employers often contribute to employees on meals in the higher amount than minimum limit set by the Labour Code, or meal vouchers are fully reimbursed by the employer.
The usage of a company’s car for private purposes is considered as employee's taxable in-kind benefit.
When using electronic devices for private purposes, the employer may assert some of the related expenses.
How and when to apply tax expenses when training employees?
How and when to apply tax expenses when accommodating employees?
Similarly, as for accommodation, a transport to/from the place of work can be tax exempt fringe benefit for the employee.
What are the taxation conditions for employers who provide recreation vouchers?
The benefits provided from the social fund represent a taxable income for employees.
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