Taxation of benefits in kind under Greek law

Circulars

¬ No.1219/06.10.2014 provides further details about the benefits in kind categories, and indicates their tax treatment and the entry into force of the withholding tax provision.


¬ No.1072/31.03.2015 states that benefits in kind are no longer subject to withholding tax through payroll, because of the fact that their evaluation seems particularly difficult. It makes it clear that due to the fact that it is difficult -if not impossible- to calculate the value of benefits in kind at the time they are granted, withholding tax on those benefits will be calculated when the tax return is being finalized given that their value (if taxable) increases the income of beneficiaries from salaried work.


¬ No.1045/2017 provides further details about the car benefits and indicates their tax treatment.


New Hellenic Income Tax Code (Law 4172/2013)

Under Article 14(1) of that Code, the following are excluded when calculating income from salaried work and pensions:

a) Premiums paid by the employee or employer on behalf of the employee as part of group pension plans and

b) Premiums paid by the employer for Medicare and hospital coverage for employees or to cover risk to their lives or disability cover in the context of an insurance policy, up to € 1,500 per year per employee.

Moreover, Article 13 of the ITC states that every benefit in kind received by an employee or dependent/relative (i.e. spouse, ascendants or descendants in the direct line) will be taken into account in taxable income at its market value, provided the total value of those benefits exceeds € 300 per tax year.

A. Examples of Benefits in kind :

a) The value of goods represented by gift cheques which were provided, and the cost of purchasing goods or services represented by vouchers which were provided.

b) The value of vouchers given free of charge to purchase goods or services at associated stores. In the case of food vouchers, the benefit in kind is assumed to be any amount exceeding € 6 per working day.

c) Use of a company credit card to cover expenses not incurred on behalf of the company, but to cover personal, family or other expenses unrelated to the business interests of the employer or not used in normal commercial transactions, where the cost is assumed by the employer.

d) Premiums paid by the employer for Medicare and hospital coverage for employees or to cover risk to their lives or disability cover in the context of an insurance policy for amount higher than € 1,500 per year per employee.

 

e) various payments made directly by employers to third parties such as:

¬ payments to extra tuition centers, schools, kindergartens, campsites, etc. to cover tuition costs, kindergarten fees, etc. for the aforementioned persons,


¬ direct payments to cover subscriptions for those persons at gyms, clubs, etc. or relating to medical expenses such as check-ups.


¬ providing company mobile phone connections to employees, managers, administrators and board members to the extent that it goes beyond the cost of their tariff plan, provided that the excess above the tariff
plan is used for personal reasons and not for reasons associated with the employer’s business activities, given that many businesses cover the specific benefit to support their operating needs, increase productivity and provide a higher level of service (such as communication with customers or associates, etc.) even outside the normal daily working hours. This benefit also includes taxes and levies corresponding to it (VAT and other levies).

It is feasible to segregate the benefit arising from the employer’s business activities from that arising from personal usage by such persons using the itemized bill provided by mobile phone companies, or it may in all events be based on a certificate from the employer confirming the amount each year relating to business or other usage of the company mobile phone.

In conclusion , there is no specific sale limit discount admitted by law in Greece and regarding the ticket restaurant (vouchers), there is a limit of 6€ per working day (132€ per month) per employee. (Protocol No:1121357 ΕΞ2015/14.9.2015).

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