Health promotion will become tax exempt in Estonia

In Estonia, an amendment to the Income Tax Act has been made which allows employers to compensate employee health promotion expenses without income and social tax for 100 euros per quarter. The amendment will come into force from year 2018 that foresees following expenses to be compensated without having to pay tax:

  1. participation fees of public sports events
  2. expenses directly related to the regular use of a sports or exercise facility
  3. expenses of maintaining the existing sports facilities of the employer
  4. expenses of the services provided by rehabilitation specialists, physiotherapists, activity therapists, clinical speech therapists, or clinical psychologists who have been entered in the national register of health care professionals or have the relevant professional qualification
  5. insurance premiums of health insurance contracts.

Please find full version of the article in English in the web site of Leinonen OÜ: https://leinonen.ee/news/news-2017/fitness-benefit-becomes-tax-exempt-in-2018

In Latvia and Lithuania payroll tax and state social insurance contributions exemption currently include only employer expenses for employee health, life or pension insurance.

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