Tourist trips at company's expense

Tourist trips at company's expense

 The State Duma has introduced a new law project that allows companies to deduct cost of tourist trips for employees for profit tax purposes under certain conditions:


-          company should sign a contract for tourist services with a travel agency;

-          costs can include travel fare (on the territory of the Russian Federation), accommodation, meals and organization of excursions

-          services can be provided to an employee, spouse, parents, children under the age of 18 (under the age of 24 if full-time students)

-          costs are fully deductible in the actual amount within the limit of 50 thousand rubles per year for each person.

Please note that the employee will have to pay personal income tax at the rate of 13% on the cost of the trip (including cost of the trip for the spouse, parents or children).