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Tuesday, March 5, 2024

Relief on gifts for employees. The last moments of the higher limit

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This is the last year in which companies and entrepreneurs can benefit from a higher tax relief on gifts for employees. According to “Rzeczpospolita”, thanks to higher limits of PIT exemptions for benefits from the social fund, you can get a gift for up to PLN 2,000 tax-free.

Anti-COVID regulations have introduced higher exemption limits PIT for benefits from the social fund. Tax-free, an employer can give an employee a gift worth up to PLN 2,000. zloty. Normally this limit is 1 thousand. zloty.

Conditions of using the discount

“Rzeczpospolita” draws attention to the conditions of the relief. First of all, a gift for an employee must be entirely financed from the company’s social benefits fund or trade union funds. Additionally, the Personal Income Tax Act states that the gift must be related to the financing of social activities.

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– The employer cannot give everyone the same amount of money. When granting benefits from the social fund, it should take into account the employee’s financial and family situation. And take into account various aspects, for example that he has a sick spouse or child – explains Piotr Popek, senior manager at KPMG, in an interview with “Rzeczpospolita”.

An additional condition is that the exemption limit applies for the entire year. – If an employee received a package for Easter for PLN 800, concert tickets for PLN 400 in the fall, and a subsidy of PLN 1,000 for Christmas. PLN, the surplus over the limit (i.e. PLN 200) will be taxed – explains Piotr Juszczyk, tax advisor at InFakt.

And the last issue is the fact that the exemption is for benefits in cash or in kind, but it does not include vouchers or vouchers. Piotr Popek summarizes that the relief does not apply to supermarket vouchers, but the so-called prepaid cards. There will also be no problem with admission tickets, e.g. to a concert, or cards for sports activities.

Exemption from ZUS contributions

It is worth remembering that the above benefits will also be exempt from: ZUS contributions. As Juszczyk points out in an interview with “Rzeczpospolita”, not only parcels and money, but also vouchers and coupons.

– The only condition for exemption from contributions: gifts or subsidies must be financed from the social fund. ZUS checks this during inspections. The rules for granting benefits should therefore result from the fund’s regulations. The name of the benefit is also important – it is better if we provide support related to increased Christmas expenses, rather than simply giving a Christmas gift. These seem like small things, but they are important during the inspection – emphasizes Piotr Popek.

Main photo source: Shutterstock

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