The recently published methodological information, accessible on the Financial Administration’s website, offers an interpretation of relevant provisions within Act No. 586/1992 Coll., on Income Taxes (the “ITA”), in the wording effective as of 1 January 2024. The document not only aligns with the Financial Administration’s perspective but also provides a comprehensive clarification of the overall approach to interpreting the law concerning employers’ contributions to employees beyond basic wages, salary, or compensation for work.

The document is divided into 3 parts:

• The first part focuses on the impact of taxation on the employee’s side, elaborating in each chapter on:

– benefits provided to employees in the form of meals and beverages;

– sports facilities available to staff at the workplace;

– other employee benefits (leisure benefits, employer-organised events);

– valuation of non-monetary benefits;

– the timing of non-cash income in relation to the so-called benefit cards.

• The second part deals with the tax deductibility of related costs on the employer’s side.
• The third part contains tables of the benefits concerned summarising the tax regime applicable until 31 December 2023 and the regime applicable from 1 January 2024.

The General Financial Directorate anticipates that the methodological information will be complemented or accompanied by a series of questions and answers published successively in response to partial problems that may arise in connection with the application of the new legislation in practice.

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