Publikációk:

About the changes concerning the holiday voucher

14 February 2010

The changes to the off-salary benefits built into the cafeteria plan may modify the administration of the plan or the choice of our colleagues that can reach a higher level of satisfaction in an optimal case. The holiday voucher can be presented to our employees or to their close relatives with reduced taxation of 25% up to the amount of the minimum wage.

Holiday voucher – benefits deriving from the amendment of the Civil Code

The following amendment was always a frequent question in case of the holiday voucher, one of the popular elements of cafeteria plan. Based on information published in issue number 30 of the Official Hungarian Gazette (Magyar Közlöny) the Civil Code was amended and it affects the holiday voucher primarily with the new definition of the close relatives. The employees could claim holiday voucher for their close relatives also in the past but it was always a problem that the cohabitant partner did not constitute close relative in this case according to the Civil Code.

 

Legal background

69. § (1) Contribution in kind is: …

ga) income in the form of discount from the value of the personally registered holiday voucher issued by the Hungarian National Holiday Foundation (Magyar Nemzeti Üdülési Alapítvány),

gb) taxable income provided to private persons via holiday service;

70. § (1) The obligation of taxation of certain contributions in kind and off-salary benefits shall be fulfilled in accordance with the provisions of Section 71.

(2) The income referred to in Paragraph (1) also includes – if the provider is the employer or the partnership (hereinafter both referred to as employer during the application of this rule) – the income listed in Point a)-e) provided to the employees (including the employees delegated to the employer based on the rules of the Labor Code), the members of a partnership with personal contribution (hereinafter the mentioned private person receiving the contribution is referred to as employee during the application of this rule)

a) based on the person and the close relatives of the employee

aa) the part of the income in the form of holiday voucher that is not exceeding the sum of minimum wage per person in the tax year.

 

The scope of close relatives is expending

According to the current amendment of the Civil Code close relatives are: the spouse, the registered cohabitant partner, the direct relative, the adopted child, the child of the spouse or registered cohabitant partner, the adopting parent, the spouse or registered cohabitant partner of the parent and the sibling. So because of the amendment it became possible to use the voucher and so the cafeteria plan of the employees in a more optimal way. These provisions of the Civil Code come into effect on 1 May 2010.

In connection with this we shall not forget to ask our employees for declaration about the relationship with the close relative beside the value of the holiday voucher received in the tax year in case voucher is claimed for a close relative.

Nemes János