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Fitness compensation and taxation

Fitness compensation and taxation

On 13 October 2017 the Ministry of Finance reminded that compensation of fitness for employees is not deductible for profit tax purposes.

Apart from that, such payments are subject to personal income tax and social taxes.

The Supreme Court has a different opinion regarding social taxes. It was pointed out that reimbursement of fitness expenses is not related to working conditions and does not depend on the work performance, and therefore is not subject to social taxes.

Thus, employers have a chance to prove their position in disputes with tax authorities.