Less income tax and social security contributions (TSU) for the Company and the Employees:
In 2018 whenever the meal allowance is paid in cash it will be taxed when it reaches € 4.77 or more.
Whenever the payment is made by means of a meal card, it will only be taxed if it reaches € 7.63 or more:
|Daily limits to the tax exemption of the Meal Allowances
|Maximum Amount not taxed (in cash)
|Maximum Amount not taxed (in meal card)
|Variation of the Daily Exemption
|Annual Exemption (estimation basis): € 2.86 x 22 days x 11 months = € 692.12
Annual Benefit for the Company (per Employee):
When companies pay allowances by crediting a Free Refeição Card, they do not pay charges if the credit does not exceed the daily limit of € 7.63, a situation that, for companies paying meal allowances that reach or exceed this amount, represents an annual benefit of € 164.38 per Employee.
€ 692.12 * Single Social Tax (23.75%) = € 164.38
Annual Benefit for Employees:
For the Employees the basis for computation is the same and the benefit falls on the 11% social security rate and on the income tax rate attributed, representing an increase in the annual net income.
Example for an Employee, considering a meal allowance equal to or above € 7.63 with a final income tax rate of 30.00%:
€ 692.12* [Single Social Tax (11%) +Income Tax (30.00%)] = € 283.77
Enables the Company to pay using meal vouchers and without the need to physically hand vouchers to the Employees.
Enables the Employees to accumulate the amounts received and use them in the following months.
Cost reduction for the company
Elimination of the administrative work associated with the processing and handling of meal vouchers.
- The use of the card is totally independent from the Company's accounts;
- Possibility of stopping top ups without the need to immediately cancel the Card;
- Possibility of cancelling and replacing the Card in case the same is lost or stolen, without loss of funds;
- The transactions must mandatorily be validated with the PIN.
The tax scenario described in this document has a general scope and may be altered.
All potential interested companies should evaluate the consequences and implications of purchasing this product in view of their particular circumstances.