VAT news [April 2026]
The General Financial Directorate disagrees with a judgment of the General Court of the Court of Justice of the European Union concerning the tax period in which the right to deduct VAT may be exercised. The Co…
End of the salary/bonus swap option from 1 January 2026
The Supreme Administrative Court has confirmed in several judgments (including in the Sony DADC and TOKOZ cases) that the current practice of transferring part of employees' wages or remuneration to a cafeteria or to benefit cards (the so-called "a salary/bonus swap”) was compliant with both labour law and tax regulations. The court rejected the arguments of the Financial Administration about circumvention of the law or discrimination against employees.
Despite this, the Financial Administration pushed through an amendment to the Income Tax Act (Section 6 (9) (d) of Act No. 586/1992 Coll.) as part of the Act accompanying the Unified Monthly Employer’s Report. The amendment was delivered to the President for signature on 12 September 2025 and is expected to take effect from 1 January 2026. It will now be possible to exempt from tax only those supplies that do not constitute wages, salaries, remuneration for work performed, or compensation for lost income.
In practice, this means that the salary/bonus swap will no longer be tax-advantaged – these supplies will be subject to both taxation and social security and health insurance contributions from 2026.
Impacts for employers
- the funds already transferred to the employee benefit system must be used by employees by 31.12.2025 at the latest;
- from 2026, it will not be possible to transfer part of the salary or remuneration to benefits without tax and levy implications;
- It will be necessary to revise internal guidelines and employment contracts, or to terminate agreements on wages in kind.
Recommendations and support
Employers should prepare for this change in time – not only from an administrative point of view, but also when setting up a future employee benefits strategy.
We are ready to support you with:
- modification of internal documentation;
- legal and tax impact analysis;
- search for alternative benefit solutions.
If you are interested in a consultation, do not hesitate to contact us.
