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…
Methodological information on taxation of benefits from 1 January 2024
To improve legal clarity, the General Financial Directorate has finally released methodological information regarding the taxation of benefits and other perks offered by employers to employees starting on 1 January 2024. Throughout the document, the terms “common” and “reasonable” are frequently employed, accompanied by a consistent plea to avoid exploiting the situation and misinterpreting the new legislation by tax entities. Consequently, we anticipate that exercising common sense and demonstrating reasonableness will be key when presenting defences during audits or responding to inquiries from tax authorities in the foreseeable future.
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.
We will keep you informed of any further news not only on our blog and in the dReport newsletter, but also in our regular webcasts and seminars on tax and legal news. Information about our services (not only) in the field of tax consulting can be found on our website.
