Therefore, this new option adds the possibility for tax subjects who, according to the current legislation, can only provide meal vouchers or canteens for its employees. Furthermore, this form of meal allowance can also be used by employees, who under the current conditions do not reach the possibility of receiving this benefit. This amendment also brings a significant reduction of the administrative burden, costs of fees and commissions that are associated with meal vouchers.
As already indicated, according to the current conditions, it is now possible to use the tax advantage in practically two ways. The first of them is to provide meals to employees in the canteen of the employer. However, if the employers are not able to provide it in this form, but still want to offer this benefit for their employees, they can provide them with the second option - meal vouchers. For these meal vouchers employees can provide meals for themselves. However, many companies do not offer meal vouchers for various reasons – e.g. due to higher administrative burdens. Therefore, the idea of possible monetary contributions for meals was born, which would allow employers to provide this benefit without the existence of a mediator, paperwork and additional fees. Moreover, even small companies or entrepreneurs with only one or two employees would be able to afford this tax-advantaged meals.
According to the current rules, an employer can claim up to 55% of the price of the provided meal or meal voucher as a tax-deductible expense. The remaining 45% is paid by the employee from his net salary. For example, for a meal voucher worth CZK 100, the employer contributes CZK 55 which he pays to the mediator company and then deducts this cost from the tax base. This calculation of the tax benefit for the monetary contributions for meals remains the same but the employer would now pay the CZK 55 directly to his employee. The remaining CZK 45, which would go to the CZK 100 meal voucher from the employee’s net salary, would remain in the employee’s wage.
However, we would like to point out that it is necessary to keep in mind the maximum amount that the employer can deduct from taxes for providing these meal benefits. This is calculated as 70 % of the value of meal allowance on business trips set by the Notice of the Ministry of Labour and Social Affairs. This year, the employer can provide employees with up to CZK 72 for each day worked. For example, for 21 days worked per month, the employee will receive approximately CZK 1,500.
We will continue to monitor this situation and will inform you as soon as this change takes into effect.
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