Christmas company meetings generally PIT-free
The period of company Christmas parties is in full swing. When organising them, it is worth bearing in mind a few elements that will affect the tax settlement of such an event.
– A party over herring and dumplings, which will be organised for employees with the aim of team integration and will be covered by the company’s working capital, will be able to be reflected in tax deductible costs, while at the same time the value of such a benefit will not be the employee’s income. Some exceptions will include situations where the meeting is financed from the Company Social Benefits Fund – explains Adam Allen, tax adviser, partner at Thedy & Partners.
Let us remind, following the Constitutional Tribunal (ref. act 7/13), that we deal with a gratuitous benefit when:
– it is provided voluntarily (with the employee’s consent) and;
– it is provided in the interest of the employee (and not in the interest of the employer) and it has benefited the employee, and
– the benefit of the benefit is measurable and attributable to the individual employee.
From the practice of tax authorities and administrative courts, it appears that it is difficult to establish the employee’s benefit from attending a Christmas (or other) meeting. Therefore, participation in this type of company attractions is not treated as an employee’s income that would be subject to PIT.