Provision of Fringe Benefits in 2023
- Oct. 2, 2023
- Reading time: 2 min
News Flash No. 32/2023
Subject: Provision of fringe benefits pursuant to Article 40 of Decree-Law No. 48/2023, converted with amendments into Law No. 85/2023
As explained in the firm’s “ News ” (Tax Briefs) No. 13/2023 and No. 26/2023, limited to the 2023 tax year, the following do not count toward taxable income, up to a total limit of 3,000 euros: the value of goods provided and services rendered to employees with dependent children for tax purposes (including recognized children born out of wedlock, adopted children, or foster children), as well as amounts paid or reimbursed to such employees by their employers for the payment of household utility bills for water, electricity, and natural gas.
It is important to emphasize that the decision regarding payment remains at the employer’s discretion.
If these benefits are provided, it is worth noting a few points to keep in mind.
As previously noted, the recipients of this “benefit” are employees with children (including recognized children born out of wedlock, adopted children, or foster children) who are considered tax dependents (Art. 12, para. 2 of the TUIR).
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