For companies that offer employment benefits, IZYS offers two discounted taxation options:
– employer support and
– employer contribution.
The self-help fund employer contribution provides a tax-free purchase option for fund members and their close relatives registered for the service. In the service network of the self-help fund, it can be used by card or bank transfer to purchase the services specified by law.
The employees are required to become Fund members to benefit from these options.
The maximum value of an employer grant, also known as a donation, is not legally limited.
The employer is not burdened by any tax or commission costs! The amount transferred as a donation is 100% eligible as an expense.
The employer transfers the amount determined as a donation to the fund based on the choice of the employee with a valid self-help fund membership. 92.5% of the transferred amount is transferred to the member’s individual fund account, the rest is used to cover the fund’s operating costs and liquidity.
The employee will have other income in the amount of the donation credited to their cash account, so in 2018 they will be subject to 15% personal income tax and 19.5% liability after 0.84 times the amount, ie the total tax effect is only 28.98%.
The grant also entitles the fund member to a 20% tax credit of up to HUF 150,000, so the difference between the tax payable and the tax credit is 8.98%, which practically makes this form of benefit the most favourable, more favourable than if the company would pay 9% corporate tax.
More information: Munkáltatói támogatás
The benefit can also be granted indefinitely in 2018 with a favorable tax rate. The employer transfers the amount indicated by the employee to the fund based on the choice of the employee with a valid self-help fund membership. 94.1% of the transferred amount is transferred to the member’s individual fund account, the rest is used to cover the fund’s operating costs and liquidity.
In 2018, the employer will be charged 15% personal income tax liability and 19.5% health contribution after 1.18 times the amount of the employer contribution, resulting in a total tax burden of 40.71%. After the employer’s contribution, the fund member cannot benefit from a tax credit.
More information: Munkáltatói hozzájárulás
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