Portugal

Today many companies assign to employees a package of retribution complements that are advantageous not only for employees but also for companies, because of tax exemptions. Among them are 3 of the most popular being the restaurant card, education and childcare vouchers.

The restaurant card is attributed to employees for payment of daily meals. Their exemption from taxes (€7.23) is higher than if payment was done in cash (€4.52) – Law 42/2016 (OE 2017). The card can be used in restaurants, coffees and supermarkets.

The education vouchers are granted to workers with children between 7 and 25 years. To benefit from tax exemption should have character of generality, i.e., put at the disposal of the universe of workers who fulfil the conditions of attribution. The annual exempt amount per child is €1.100.

The child care vouchers finally follow the same general rules and they are destined for employees with children up to 7 years. In this case there is no maximum limit for exemption.

These payment methods can be used in establishments who have agreement with the vouchers and card provider network and cannot at any time constitute the replacement, even if partial, of the current salary, as described in the Decree-Law 26 / 99 of 28 January, article 9, nr. 3.

In the field of the payroll it should be processed as benefit in kind so that the company correctly declares earnings paid to the tax authority, as besides their exemption they are compulsorily declared in the DMR-AT as not subject earnings.

Sometimes it is not possible to use the same type of benefits due to the headcount personal situation, this way we advance that also nursing homes and other social services when used as family assistance are also exempt from social security as described in the article 48 ° of the current Social Security code.