Daňová uznatelnost benefitů poskytovaných členům statutárních orgánů

Tax deductibility of benefits provided to members of statutory bodies

According to Section 24(2)(j)(4) of the Income Taxes Act, costs for working and social conditions of the employees may be considered tax deductible.[1]

Typically, this includes, for example, pension or life insurance provided to employees or the use of a company car for private purposes.

Since 2024, the scope of this provision has also been extended to the provision of preferential meals, whether in the form of a meal allowance, meal vouchers or company canteens, as well as to benefits above the newly introduced limit for exemption from personal income tax has been newly introduced (for example, the possibility to use sports, cultural or medical facilities, tuition fees etc.).

A key element of the above-mentioned provision is that the tax deductibility of these costs is conditional on their being enshrined in an internal directive or a collective, employment or other agreement.

We would like to draw attention to the fact that in the case of providing benefits to members of statutory bodies, it is not sufficient to state the entitlement in the agreement on performance of position (or other document), but it is necessary that the agreement on performance of position (or other document) is approved by the general meeting (or the supervisory board of a joint stock company, if relevant). If benefits (or other fulfilment) that are not specified in the agreement on performance of position (or other document) approved by the general meeting/supervisory board are provided, the provision of such benefits (or other fulfilment) requires the approval of the general meeting/supervisory board and the opinion of supervisory body, if established.   

It is therefore recommended to review the set-up of the relationship between the company and its statutory bodies and, in particular, whether any benefits (or other fulfilment) provided to them have been duly approved by the general meeting.

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

Authors:

Zuzana Mikulová

Ladislava Zamazalová

Dušan Kmoch

[1] unless the Income Tax Act itself or another law limits tax deductibility