On 1 August 2023, the Supreme Administrative Court (ref. no. II FSK 270/2) issued a precedent-setting judgment on the taxation of benefits of employees posted to work abroad.

In this ruling, the SAC stated that the costs incurred by the employer for the accommodation and transportation of employees posted abroad for short periods of time, in essence resembling business trips, in accordance with EU regulations (Directives 96/71/EC and 2014/67/EC) are not included in employees' wages. Therefore, also under tax regulations, they cannot be considered as income that is taxable and on which the company (employer) should collect advance tax payments.

While this ruling concerns taxation, in our opinion, it should also apply to social security and health insurance contributions. Since the value of these benefits does not constitute taxable income, it should also not be included in the contribution base.

Find more in the PRO HR August 2023