Healthy meal at employer's tax-free

The Supreme Court ruled on May 24, 2024 that the free provision of healthy lunch meals provided to employees by an employer in 2017 and 2018, within the framework of the occupational health and safety policy, under the targeted exemption for occupational health and safety provisions falls under payroll tax. That means that these costs are not charged to the free space within the work cost scheme need to be brought. The same applies to other years up to and including 2021. From 2022, this exemption for occupational health and safety provisions tightened.

Case

An employer (producer of sprouts) provided free of charge in 2017 and 2018 healthy fresh lunches to employees as part of its occupational health and safety policy. The lunch meals, prepared by a dietician, met the guidelines of the Health Council and the Nutrition Centre.

The procedure

The employer believed that he could provide the healthy meals tax-free employees could provide as part of its occupational health and safety policy. The tax authorities, the The court and the court of appeal disagreed. The court of appeal ruled, as did the court and the tax authorities, that this provision was not fell under the exemption for occupational health and safety provisions, because it was the general health of employees. The employer appealed to the Supreme Court Council.

Supreme Court Judgment

The Supreme Court now rules that the exemption for occupational health and safety provisions does apply applies if the provisions arise from the employer's occupational health and safety policy, even if the employer's occupational health and safety policy is broader than is legally required. The providing healthy meals can help prevent sickness absence and therefore falls under the occupational health and safety policy. The occupational health and safety policy does not have to to specifically focus on work-related aspects of health, it can also be broader and promote health more generally than prevent diseases. It is also not important that the provision of meals leads to a considerable private savings leads to employees. It is sufficient that the providing lunch directly results from the working conditions policy that the employer implements. This policy does not have to be to be recorded in writing, according to the Supreme Court. The Supreme Court therefore rejected the judgment of the Court of Appeal and ruled that the provided lunches in 2017 and 2018 are covered by the targeted exemption for occupational health and safety provisions. The employer is therefore entitled to a refund of the paid payroll tax.

What does this mean in practice?

Healthy lunches provided free of charge by the employer as part of the occupational health and safety policy, fall under the targeted exemption within the work costs scheme applies to occupational health and safety provisions. The employer is therefore not liable for payroll tax on this due. At least for the years up to and including 2021.

Have you provided free healthy meals to employees up to and including 2021 and have you

not charged to the free space, you no longer run any risk with a possible book research on these years. You can rely on the above discussed judgment of the Supreme Court.

From 2022, the exemption for occupational health and safety provisions will be restricted: under the targeted Only those facilities that are directly related to the exemption are exempt

obligations of the employer under the Working Conditions Act. For example, consider an ergonomic desk for the home workplace, a lab coat, a computer glasses and safety shoes. The healthy lunch falls into this category principle no longer applies, nor does the generic reimbursement or provision of general health checks for employees. The question now is whether the ruling of the It is not yet clear whether the Supreme Court will change this.

Recommendation

It is wise to review your occupational health and safety policy and check whether all benefits and reimbursements based on your occupational health and safety policy in the correct manner are fiscally qualified and processed. For a check on this or for more information

You can of course contact us about the work costs scheme and/or your occupational health and safety policy to withdraw.