In brief
12 November 2018

President rejected the Amendment of the Act on support of travel and tourism

President rejected the Amendment of the Act on support of travel and tourism which was approved by the Parliament during the October's session which focuses on recreation of employees and introduces recreational vouchers as a new instrument of financing tourism development.

Daňové a právne oddelenie

The Amendment of the Act on support of travel and tourism indirectly amends several other legal acts, e.g. the Labour Code where the conditions for providing the recreational contribution are defined as follows:

  • employers employing more than 49 employees are obliged to provide the recreational contribution to their employees,

  • recreational contribution is provided by the employer upon the request of the employee,

  • recreational contribution is provided in the amount of 55% of the total eligible costs; up to 275 EUR annually per employee working full-time (when there is a part-time working contract the contribution is docked proportionally),

  • the recreational contributions can be provided in the form of recreational voucher or without the recreational voucher – i.e. as a reimbursement of eligible costs of the employee once the right for the contribution is proved and relevant documents are provided.

Tax implications of the recreational contribution are defined in the Amendment of the Income Tax Act which is also a part of the Amendment of the Act on support of travel and tourism. We will keep you updated about the next steps of the legislative process.

 

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