Mobile phone and notebook for private purposes
When company’s assets are used by the employees for private purposes, the employer may include the costs for acquisition, technical improvement, operation, repairs, and maintenance of these assets in the tax-deductible expenses in an actual demonstrable amount corresponding to their usage for business purposes or in the form of lump-sum expenses of 80%.
The above-mentioned conditions do not apply to expenses that have been provided by employer to his employees as a fringe benefit agreed in an employment, collective or other similar agreement. If the provision of a notebook and mobile phone for private purposes is agreed, for example, in an employment contract and this benefit is taxed to the employee as an employment income by the employer, the employer may include the expenses related to acquisition of a notebook/mobile phone, monthly telecom charges and other related expenses into tax deductible costs in a full amount.
Should an employer decide to exempt the private use of such assets from the employee’s taxation, it can be done up to the amount of € 500 per year. However, in this case, the employer cannot claim expenses related to private use as tax deductible expense.
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.
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.
What are the taxation conditions for employers who provide recreation vouchers?
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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