Changes in the taxation of “meals” for employees from 1 January 2022
On 1 January 2022, the taxation of employees’ meals will change significantly. That’s because on 26 October 2021, an amendment to Income Tax Act No. 595/2003, as amended, which will become effective in January, was approved.
The amendment of the Income Tax Act as well as the Labour Code was initiated by a group of Members of Parliament with the intention of enabling employers to provide the financial contribution for meals and meal vouchers additionally, i.e., after the end of the calendar month, and to eliminate the different tax views on the provision of financial contribution for meals (monetary form of meals) relative to non-monetary forms of meals (meal vouchers, etc.).
Making these forms equal should, of course, represent an improvement for employees, i.e., the financial contribution for meals would also be exempt from income tax in employees just like the non-monetary form is.