Daňová uznatelnost nákladů na zajištění stravování při pracovní cestě

Tax deductibility of the costs of meals for employees during a business trip

We would like to share with you a summary of Notes  593/18.05.22 concerning the costs of meals provided to  employees free of charge during the business trips discussed at the Coordination Committee in June this year.

The Income Taxes Act stipulates that meal allowances provided by the employer to its employees during the business trips should be treated as tax deductible. On the other hand, it is not fully clear whether the same regime is applicable when the employer pays directly for meals during the business trip. The only guidance is provided by D-22 Instruction, which however confirms the tax deductibility only of costs for meals  provided during the training activities. In practice, therefore, the question has arisen as to whether the costs for meals provided during other activities e.g., business trips or customer events could be treated as tax deductible as well.

The General Financial Directorate (“GDS”)  agreed with the view that the costs for meals provided during the business trips in the form of breakfast, lunch or dinner, could be treated as tax deductible, provided that there is a legal entitlement and the value of meals is reasonable in terms of the conditions of business trips. Additionally, the GDS stressed that the different approach could be applicable if the payment for meals factually represents the hidden remuneration for the employees.

We recommend reviewing the internal rules relating to the business trips to determine when the costs for meals covered by the employer may be treated as tax deductible.

For the sake of completeness, please note that the conclusions of the Coordination Committee are not legally binding, but in practice are generally accepted by the Tax Authorities.

At the same time, we would like to stress that the above brief commentary cannot replace a detailed tax review. We would be happy to help you with this topic or any other tax aspects of your business activities.

If you have any questions, please contact the authors of this article or the EY tax team with whom you regularly work.

Authors:

Ladislava Zamazalová
Ivan Zhurkin