Tax benefits for companies & employees

Tax advantages for companies

1. Tax-free health promotion (§ 3 No. 34 EStG):
   • Companies can spend up to 600 euros per employee and calendar year tax-free on health promotion measures.
   • Examples of such measures include back training, stress management seminars and exercise programs.
2. Workplace health promotion as a business expense:
   • Expenses for workplace health promotion can be deducted as business expenses if they are in the overriding business interest.
3. Tax-free provision of company sports facilities (§ 3 No. 34a EStG):
   • The provision of company sports facilities to employees free of charge or at a reduced price remains tax-free if the facility is an internal company facility.
4. Subsidies for preventive measures:
   • Companies can provide subsidies for health courses and preventive measures that are certified by health insurance companies.

Tax benefits for employees

1. Tax-free allowances and benefits in kind (§ 3 No. 34 EStG):
   • Employees can benefit from the above-mentioned tax-free allowances and benefits in kind for health promotion.
2. Reducing the tax burden through health measures:
   • Under certain circumstances, employees can claim expenses for health measures that are not borne by the employer as extraordinary expenses or as income-related expenses.

Benefits in kind according to § 8 EStG

1. Tax-free benefits in kind (§ 8 para. 2 EStG):
   • Benefits in kind up to an amount of 50 euros per month are tax-free. This can be in the form of vouchers or cash cards that can be used for health-promoting measures.
2. Examples of benefits in kind:
   • Memberships in fitness studios, wellness vouchers or sports equipment that contribute to the promotion of health.
3. Regulations on the exemption limit:
   • If the 50 euro limit is exceeded, the entire amount is taxable.

In summary, this means

• 600 euros per yearfor tax-free benefits in kind.
• 600 euros per yearfor tax-free allowances for health promotion.

In total, employees could therefore receive up to 1,200 euros per year in tax-free benefits from these two categories.

Disclaimer: This page is for initial information purposes only and does not constitute tax advice. For individual tax advice and binding information, please contact a tax consultant or the relevant tax authority.