24 January 2023
Employment Tax
The Detail
In 2023, the non-cash benefit values will be increased to the following amounts:
Value in kind for meals
If employees receive benefits in kind from their employer (e.g., meals provided to employees free of charge or at a reduced price every working day or free accommodation), these are subject to wage tax as non-cash benefits. This also applies to meals which are subject to wage tax and provided to the employee by the employer or by a third party at the employer’s request during a business trip or during a double housekeeping, provided that the value of the meal does not exceed EUR 60.
The employer may tax the non-cash benefit at a flat tax rate of 25% (plus 5.5% solidarity surcharge and, if applicable, flat-rate church tax). For the calculation of the taxable benefit in kind, the official benefit values (according to the Social Security Remuneration Ordinance SvEV) are to be used. If the flat-rate wage tax is applied, the benefit in kind is exempt from social security contributions.
The values have changed as follows from 2023:
● Lunch or dinner: 3.80 EUR / calendar day
● Breakfast: 2.00 EUR / calendar day
● Full day meals: 9.60 EUR / calendar day
This results in a monthly value for meals of EUR 288 as of 01.01.2023.
The new non-cash benefit values for 2023 are already applicable from the first payroll month of 2023 and are subject to both tax and social security contributions.
If the employee receives meal vouchers from the employer, the settlement value or the employer’s allowance per lunch may exceed the official non-cash benefit value by a maximum of EUR 3.10. This means that the value of the meal voucher may be at a maximum of EUR 6.90.
Value in kind for accommodation
Since January 1, 2023 the monthly non-cash benefit value for free or reduced-price accommodation is EUR 265. The value of the accommodation can also be assessed with the locally cheaper rent if the value would be unreasonable according to the situation of the individual case.
Contact us
For a deeper discussion on the above, please reach out to your Vialto Partners point of contact, or alternatively:
• Anna Liepelt, Senior Manager | anna.l.liepelt@vialto.com
• Isabell Gelder, Senior Associate | isabell.g.gelder@vialto.com
Further information on Vialto Partners can be found here: www.vialtopartners.com
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