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Tax and insurance treatment of sports cards (Multisport, Sport pass and others)

Напоследък все по-популярни стават картите за спорт (Sport Pass, Multisport and others) as a social incentive from the employer to the employees. Все повече работодатели възприемат тази практика. Immediately after its adoption, however, comes the question of the tax and insurance treatment of sports cards.

The Labor Code provides information on the possible options for social costs. This type of sports card corresponds to the variants described in CT.

Treatment according to ZKPO. VAT and CSR is determined based on the questions:

  • Are all employees entitled to such cards?
  • Do the employees receiving the card have a deductible for the cost of the card or is it fully covered by the employer?

Ще разгледам няколко варианта от практиката.

Option 1: Всички служители имат право на карта за спорт и работодателя я предоставя в натура (no cash relationships card related relationships).

If all employees are entitled to receive such a card (like plastic, and not as money) and have no self-participation in it – then the cost is a social cost presented in kind by the employer. This type of expenditure falls within the scope of Art. 204 from ZKPO and is taxed on expenses (social expenditure tax). The expense and the tax on it are recognized for tax purposes in the year of accrual and do not form a tax temporary difference. Social security tax is due up to 31 March of the year, following the year to which it relates.

Option 2: Всички служители имат право на карта за спорт и работодателя я предоставя в натура. Employees pay half of the value of the card.

In this case, there is a monetary relationship between the persons in relation to this acquisition. According to ZKPO, the existence of monetary relationships in relation to these costs, even if received in kind does not enable them to be classified as”social costs, provided in kind”. This is mentioned in additional provisions of ZKPO § 1, etc. 34. Разходите биха се тратирали като допълнително възнаграждение, which is subject to insurance and taxes on the full value of the card.

Option 3: Не всички служители имат право на такава карта и работодателя я предоставя в натура (no cash relationships card related relationships).

If not all employees are entitled to this card, the expenditure for the card cannot be treated as a social expenditure in kind under Art. 204. In this case, there is no tax on the expenses, and the card received by the employee should be taxed as additional “bonus” to the salary is subject to insurance and taxes according to CSR and VAT and on the entire value of the card.

Other similar types of social benefits would be treated in a similar way.

 

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