What does the flat-rate taxation of some benefits mean for my company?

Each benefit is treated differently for income tax purposes. Some benefits, such as non-cash benefits, are exempt from income tax, while others, such as meal allowances, are subject to a flat-rate tax.

Despite the flat-rate tax, benefits generate significant net advantages for employees, as the flat-rate tax is generally lower than the regular income tax rate and also reduces social security contributions. The specific percentages of the flat-rate tax vary from benefit to benefit.

Note:

For the following reasons, the flat-rate tax at :pxtra is always considered separately from the employee's benefit budget:

• The individual flat-rate tax on benefits is difficult for employees to understand.

• Employees would be negatively surprised if their benefit budget were reduced by the flat-rate tax.

• The flat-rate tax can be roughly estimated when introducing benefits and can potentially be deducted from the allocated budget beforehand.

We recommend considering the flat-rate tax independently of the benefit budget to achieve the greatest possible positive impact on employees. This means that approximately 20% should be added to the benefit budget for the flat-rate tax. The exact figures will depend on the employee's chosen benefits.