Payment in kind

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Benefits in kind - Free drinks in a company

As payment in kind ( English employee benefits , German  social benefits , employee benefits or English fringe benefits , German  fringe benefits , fringe benefits ) is defined as income that is not in money made or monetary benefits that enrich the recipient, or payment in kind . In Austria , the term benefit in kind for employees is common.

Germany

Income includes all goods that exist in money or monetary value according to § 8 Paragraph 1 EStG . The value of a benefit in kind for an employee is therefore part of the taxable wages. However, according to Section 8, Paragraph 2, Clause 11 of the Income Tax Act, a payment in kind of up to EUR 44 per calendar month is not counted towards wages ( exemption limit ) - possibly after deduction of the remuneration paid by the taxpayer.

Examples

  • Providing a company car for private use
  • Board and lodging for domestic workers
  • Goods or services that an employee receives cheaper or free of charge as a result of his employment relationship ; see Deputatwage , staff discount
  • The difference between the current market value and the base value of a share when exercising stock options granted to the employee.
  • Vouchers such as B. fuel vouchers, cinema vouchers or goods vouchers up to a value of 44 euros. Whether the voucher contains a value (within the 44 euro exemption limit ) is not relevant. The prerequisite is that the voucher is linked to a contribution in kind and cannot be paid out in monetary terms. A refund or payment of monetary amounts must be excluded.
  • Gifts on special occasions: According to R 19.6 LStR, non- cash benefits in the form of courtesies from the employer up to a value of 60 euros (before 2015 only 40 euros), which “are usually exchanged in social intercourse”, are considered as benefits in kind. The prerequisite for tax exemption is that the donation is due to a “special personal occasion”. Such an occasion can e.g. B. the birthday, the company anniversary or the wedding of an employee.
  • Free charging of an electric vehicle at the workplace (Section 3 No. 46 EStG)
  • Work clothes ( § 3 No. 31 EStG)
  • Kindergarten grant ( Section 3 No. 33 EStG)
  • Health promotion up to 500 euros per year and employee ( Section 3 No. 34 EStG)
  • Care allowances to improve the work-life balance (work-children and family members in need of care) ( Section 3 No. 34a EStG)
  • Travel allowances - job ticket ( Section 8 (2) sentence 1 EStG)
  • Lump-sum taxed benefits in kind ( Section 37b EStG)
  • Meals ( § 40 EStG)
  • Circulation by members of the Royal Navy floating units until 1970

Evaluation of the benefit in kind

According to Section 8 of the Income Tax Act (EStG), the value of a payment in kind is to be set at the final price at the place of delivery, less the usual price discounts.

Requirements for evaluation exist with regard to the provision of company cars . The values ​​for board and lodging are specified in detail in the Social Insurance Remuneration Ordinance.

If an employee receives goods or services as a result of his employment relationship that are not primarily manufactured, sold or provided by the employer for the needs of his employees, the final price reduced by 4% is deemed to be a benefit in kind. The final price is the value at which the employer or the customer closest to the place of delivery offers the goods or services to third-party end consumers in general business transactions. Benefits in kind are tax-free, provided that they do not exceed a total of 1,080 euros in the calendar year from the employment relationship ( discount allowance ).

taxation

There is an option for company-induced benefits that are provided in addition to the already agreed service or consideration, and for gifts to persons who are not employees of the taxpayer, the possibility of assuming income tax as a flat rate tax of 30% for the recipient in accordance with Section 37b EStG .

The inflow principle applies to benefits in kind .

Austria

Benefits in kind to employees are deemed to be items subject to wage tax. The law only standardizes certain gifts from the employer to his employees as well as certain advantages from participating in company events with the associated usual benefits in kind as exempt from income tax.

See also

Individual evidence

  1. BFH, judgment of November 11, 2010, Az. VI R 27/09 full text ; Az. VI R 41/10 full text ; Az. VI R 21/09, full text .
  2. For details see wage tax guidelines (LStR) ( Memento of the original from February 23, 2009 in the Internet Archive ) Info: The archive link has been inserted automatically and has not yet been checked. Please check the original and archive link according to the instructions and then remove this notice. under margin no. 8.1. @1@ 2Template: Webachiv / IABot / www.bundesfinanzministerium.de