Employee benefit

As a benefit in kind (English: Employee benefits or fringe benefits ) is called in the labor, social security and tax law, such income from the employment relationship, which does not consist of money. The benefit in kind is a non-cash benefit that enriches the employee and remuneration for his work ( pay). A kind reference is also referred to as a benefit in kind, payment in kind, benefit in kind or additional power. In Austria, the term benefit in kind is common to employees.

• 2.1 The applicable statutory provision at a glance
• 2.2 Outlook

Germany

As revenue all goods consisting in money or money's worth under § 8 para 1 Income Tax Act. Thus, the value of a property reference belongs in an employee of the taxable wages. Most common applications are the free provision of a company car (also) for private use or since January 1996, the release of cut-price cafeteria meals. The benefit in kind is not recognized if, after deduction of compensation paid by the taxpayer does not exceed 44 euros per calendar month ( exemption limit).

Examples

• Provision of a company car for private use
• Free or discounted meals or flat
• Goods or services it gets cheaper or free of a worker by reason of their employment; see Deputatlohn
• The difference between the current market value and base value of a share in exercising of stock options granted to the employees
• Petrol vouchers
• Cinema vouchers without a value

Measurement of property reference

The value of a property, reference is required by § 8 Income Tax Act with the final price at the delivery site, net of standard discounts to schedule. For details, see Income tax guidelines ( LStR ) indicated in point 8.1.

More detailed guidelines for analyzing exist regarding the private use of vehicles ( see company car taxation ) and for reduced-price or free provision of meals, accommodation and housing than in kind. 1 No. 4 of the Fourth Book of the Social Code For room and board annually by regulation in accordance with § 17 Section 1 Sentence determined values ​​that are relevant for all workers. Under the social security charges regulation of property, respect for catering for the year 2012 is on monthly 219 euros (2013: € 224 ) determined. This value consists of the value of 47 euros for breakfast (2013: € 48 ), lunch from 86 EUR (2013: € 88) and dinner from € 86 (2013: € 88) ( § 2 para 2 SvEV ). Meals, which are delivered for shorter times than a month to put a day with a thirtieth of the month value.

Be an employee receives on the basis of the employment relationship goods or services which are not predominantly made ​​by the employer for the needs of its employees, sold or delivered, shall be deemed payment in kind by the reduced four percent final price. Final price is the price at which offers of employers or the delivery location nearest purchasers established the goods or services foreign final consumers in general business. Payments in kind are tax-free, provided they do not exceed the employment relationship in total EUR 1,080 per calendar year ( discount allowance ).

Taxation

Optionally, for non-cash compensation to employees and non- employees for the applicable Community taxpayers since January 1, 2007, the possibility of the wage or income tax - rather than the individual tax rate - 30% flat rate to apply in accordance with § 37b of the Income Tax Act. This lump-sum tax causes the final taxation of the benefit in kind warranty ends.

Austria

Non-cash benefits to employees are within the scope of the Austrian payroll accounting principle as a wage tax reference parts. Otherwise provided by law, only certain gifts of the employer to his employees as well as certain benefits from participation in company events associated with this usual non-cash benefits as income tax exempt.

The applicable provision of law at a glance

The § 3, paragraph 1, point 14 of the Income Tax Act 1988 performs the following determination on: From the income tax are exempt ... " the money values ​​benefit from participation in company events (eg, company outings, etc.) and thereby received the usual benefits in kind, where the cost of operating events and the non-cash benefits are appropriate. "This provision of law has always given rise to criticism. For example, the term "appropriate " is interpreted very differently for a benefit in kind, although in this case have also been established regulatory guidelines. Thus, the Administrative Court has not recognized 91/14/0060 In its decision of 11 June 1991, to a lessee under an operating service anniversary be followed Vouchers and corporate medals as exempt from income tax. Here it was noted that this kind contributions represent a excessive financial benefit for the employee as part of a company event and are therefore not covered by the exemption.

In the context of a decision of the UFS 29 July 2004 RV/1272-W/02 were tax-free treated by a taxpayer birthday gifts, Christmas gifts, etc. partially treated as taxable. In this case, however, the agency placed the tax exemption for employee Christmas gifts generally not dispute if all employees could benefit from it. However, it was noted that only a sufficiency up to a limit of 186 euros (and therefore tax-exempt status ) is given, the excess part thus constitutes a taxable benefit in kind. This suggests that gifts in the context of company anniversaries and celebrations are generally recognized as tax-free, however, a corresponding limit to be considered by the administration to the Authority.

View

This current trend, however, is subject to constant change and it remains to be seen how that is important for the purpose of payroll situation will evolve. In particular, the recent case law of the Administrative Court and the UFS will be considered in the future, who interpret the concept of "reasonableness " constantly new and therefore also to interpret them to the detriment of wage taxpayers.