The net pay of workers can be increased with remuneration in kind such as, for example, meal ticket, car use for private purposes, the use of housing, health insurance, life insurance or accident or plans pension check transportation, etc.
Among these rewards, there are a number of goods or services that can perceive employees and remuneration are considered exempt from taxation:
- Private health insurance: If the company pays the health insurance premiums worker or spouse will mean a tax advantage because they are not taxed in the case of not more than 500 per year for each member of the household (1,500 euros in case of people disabled).
- Food vouchers: Exempt the tickets are delivered to the worker for a maximum of 9 euros a day.
- Nursery vouchers: It is a social benefit for workers who have children of 0-3 years, since kindergarten fee is exempt from taxation.
- Cheques transport: It is a card that allows employees to obtain significant tax advantages by public transport. They are exempt 1,500 per year.
- Training: Courses, studies of recycling for employees that have to do with the activity of the worker, or the use of new technologies, are exempt from taxation, as well as the acquisition of computer, tablet or Internet use.
By introducing these concepts in worker compensation, it benefits from no tax on such amounts, which is a way of raising the net salary.
Important. The payment in kind may not exceed 30% of the worker’s salary in cash, as indicated in the Statute of Workers. Remuneration in kind are subject to the regulations of the income tax, as the monetary remuneration. In addition to these, other benefits in kind are:
- The enjoyment of the dwelling
- Vehicle
- Pension plans
- Equity of the company
Attention to the remuneration in kind related to company car
If the employee uses the vehicle but is owned by the same company, the fee is 20% of the acquisition cost, meaning that the amount paid by the company, including expenses and taxes levied operation.
The National Court, in its judgment of 13 April 2009, establishes criteria for the calculation of the payment in kind of mixed use, which must determine the actual use of the vehicle and the characteristics of the job (as for sales staff, for example, stands at 25% and other professionals in 50%).
Our recommendation
We recommend that you consider the energy efficient vehicles, which will have a reduction of up to 30% in income tax.
