What salary benefits can an employer offer that are tax-exempt (or partially)?
Quick answer
- 1. Certain salary benefits have favorable tax treatment within legal limits.
- 2. Examples: holiday vouchers, certain subscriptions, Pillar III voluntary pension contributions, the remote-work allowance.
- 3. These benefits are tax-free only within a monthly cap set by the Fiscal Code.
- 4. Above the cap, the part exceeding the limit is taxed as salary income.
- 5. The concrete treatment differs from one benefit to another.
What the law says
- The Fiscal Code sets a monthly aggregate cap for certain benefits with favorable treatment.
- Within the cap, benefits such as Pillar III, remote work or certain subscriptions are tax-free.
- The part exceeding the cap is included in the taxable base and in contributions.
- Holiday vouchers have their own taxation rules, distinct from salary.
- The figures should be confirmed against the caps in force, which may be adjusted during the year.
Practical examples
- Example: a Pillar III voluntary pension contribution within the annual cap is not taxed.
- Example: the remote-work allowance granted within the monthly limit is tax-free.
- Example: a gym subscription above the aggregate cap leads to taxing the part exceeding the limit.
- Example: holiday vouchers have their own regime, separate from the other benefits.
Common mistakes
- Treating all benefits as fully tax-free, regardless of the cap.
- Stacking several benefits without checking the monthly aggregate cap.
- Forgetting to tax the part of a benefit that exceeds the set limit.
- Using outdated caps after adjustments during the year.
How 4softhr helps
- 4softhr keeps track of the benefits granted to each employee, as pre-payroll data.
- It prepares the elements needed to monitor the monthly aggregate cap of benefits.
- It reflects benefits and any taxable part on the employee's payslip.
- It exports the monthly data for the accountant and for Declaration 112.
- It integrates with 4conta from the 4b2b ecosystem, which applies the exact tax treatment of each benefit.