This year will mark the start of taxation of benefits in kind in special cases. All income tax declarations this year will include benefits in kind that are taxable according to the new framework.
Benefits in kind received by an employee or an employee’s family member will be included in the taxable income at market value in cases when the total value of benefits in kind exceeds the amount of three hundred euros (€300) per tax year. The market value is defined as the cost of the benefit which burdens the employer. However, benefits in kind which are not considered income from employment (such as the granting of special working clothes, workplace meals, paid parking etc.) are included in the list of exemptions.
Additionally, the benefits in kind which are given to the staff of a company according to a collective labor law will not be considered as income from employment to the beneficiaries, as they are deemed to be given to meet the labor needs of the company’s employees.
The changes introduced are very specific and there are plenty of complexities so we advise clients to be well-informed before the submission of the annual income declaration.
Country Manager of Eurofast in Greece