27 December 2017

What are the tax savings for companies and employees of Ticket Restaurant?

More and more companies and professionals are opting for flexible remuneration, allowing agreement on how much of the salary is paid in cash and how much is paid in services that cover employees' day-to-day expenses, such as meals, childcare or public transport. In this way, both the company and the employee benefit, among other advantages, from significant tax savings.

One of the options of the flexible remuneration system is known as meal vouchers or restaurant cards., The company assumes part of this daily extra cost, which many employees have to pay for with a card or cheque provided by the company. The company assumes part of this daily extra cost, which many employees have to face, which This means an increase in the purchasing power of professionals.

In the case of Ticket Restaurant, by Edenred, more than 35,000 establishments are members of the service, but what are the advantages in terms of tax savings for workers and companies?

Ticket Restaurant tax savings for employees

On tax savings for workers, Ticket Restaurant expenditure is not taxed under Personal Income Tax up to 30% of gross annual remuneration%, provided that the following conditions are met requirements gathered by legislation.

What are these conditions?

The maximum tax-free allowance on Income Tax is 11 euros per day; The remainder will still need to be declared. However, this deductible amount could rise to 11 euros from 1 January 2018 if the government finally approves the planned legal amendment.
Vouchers must be assigned to a specific person and it must state on the card or cheque its number, the issuing company and the amount.
The unspent amount cannot be cumulative to working days other than the one for which it was intended, nor can the amount be paid to the worker.
The use of the restaurant card or cheque must be made at Working days for employee.
The use of the Ticket Restaurant should be developed in days on which the worker does not benefit from daily allowances either By way of maintenance on the occasion of travel.
They must be used in Hospitality establishments.
The company must have a record of restaurant tickets delivered.

Therefore, if an employee uses the non-taxable maximum on Ticket Restaurant for 20 working days in a month, for eleven months of the year, The expenditure will amount to 1,980 euros. Although the tax saving will depend on the tax bracket the worker is in, it will range between €35 and €85 per month, meaning, between €385 and €935 per year exempt from VAT and with increased purchasing power.

Tax advantages for companies

Not only employees benefit from the advantages of the Ticket Restaurant. In the case of organisations, the expenses for this service are deductible at 100% for corporate income tax purposes as personnel expenses.

Now, although the Ticket Restaurant is exempt from income tax, yes, they contribute to Social Security.

Also the Self-employed, provided they can justify the expense with the corresponding document or invoice, they will be able to deduct it from their taxes.