The Municipal Court in Prague issued decision ref. no. 6 Af 20/2020-28 determining that income from a short-term rental made through platforms like Airbnb does not constitute a rental of immovable property, but provision of accommodation services.
With effect from 1 January 2020 and after more than 30 years, employers are thanks to the Amendment to the Income Taxes Act allowed to provide their employees with a meal contribution in financial form without having to prove its purpose. According to the Ministry of Finance’s statement, the “monetary meal allowance” is an addition to the current tax benefits for catering. What are the rules of its provision and what should not be forgotten so that employers can fully use the tax benefits?
In 2021, the assessment base for social security and health insurance contributions increases, the rates for meal allowances for trips abroad and reimbursement of travel expenses relating to business trips are changed. In addition, the minimum and average wages are increased, the super-gross wage is cancelled, and the method of vacation calculation is changed. And that is not all. You can read about this year’s changes in our article.
The government has prepared another measure, which consists of an exemption for small and medium-sized businesses to pay part of insurance premium. The exemption means a decrease in the assessment base of the employer’s social insurance in an amount not exceeding 1.5 multiple of the average wage, provided that certain conditions have been met. What is specific about this case is that this measure (unlike many previous ones) does not follow from the effects of the COVID-19 crisis.
Higher minimum salary, higher average salary and therefore higher maximum assessment base for the payment of insurance. These are just some of the changes brought by 2020. What other adjustments should we expect?
