Social events provided by the employer

From January, the Income Tax Act has introduced a new provision relating to tax exemption in respect of income arising from sport and cultural events organised by employers for their employees and their family members in a standard form and to a reasonable extent. Such a provision has been widely discussed and its application in real life will be proved over time.

Nevertheless, the draft amendment changes this provision and specifies that tax exemption constitutes non-monetary income in the form of the presence of employees or their family member at a social event which also includes sport or cultural events if that event is organised by the employer in a standard form and extent and for a limited circle of participants.

According to the General Financial Directory's interpretation there is no need to record the tax-exempt amounts in the payroll slip of the employees in question.