An employer who employs more than 49 employees is obliged to provide to an employee whose employment lasts continuously for at least 24 months at his/her request a recreation allowance of 55% of eligible expenses, but not more than € 275 per calendar year.
For these purposes, employee within the meaning of the Labour Code is relevant. It means that, for example, a managing director without an employment contract is not considered an employee. In the case of an employee with a part-time employment relationship, the amount of the allowance is proportional to partial working time.
The recreation allowance may also be provided under the same conditions and to the same extent by the employer who employs less than 50 employees. Fulfilling of the conditions for the provision of recreation allowance is assessed on the day of the beginning of recreation.
On the employee's side, the recreation allowance of a maximum € 275 per calendar year is tax exempt and as well not subject to social and health insurance contributions. The recreation allowances are tax deductible expense for the company.
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.
The benefits provided from the social fund represent a taxable income for employees.
Employers may provide various other types of fringe benefits.
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