If you are an employer, it is possible to provide accommodation for your employees without paying taxes or social security contributions, and this expense will be recognized for you as a tax expense. There are three possibilities for this, and certain conditions prescribed by the Law and Ordinance on income tax must be met.

Employee concludes a rental agreement with the employer

The employer has the right to refund the employee the entire rental amount or a certain part during the employment relationship and this is an autonomous decision of the employer. In this case, the employee must provide the employer with a copy of the rental agreement or invoice, and the employer will reimburse the rent costs exclusively by payment to the account. The receipt is realized when the employee receives his compensation.

Rental costs are considered non-taxable receipts if the rental contract is for an employee, and if it is for several persons, then only the part that can be attributed to that employee is non-taxable. Only the accommodation costs are considered as non-taxable receipts without included utility costs.

The Tax Authority should be informed about these payments by submitting the JOPPD form (page B, 15.1. – mark 68) on the day of the payment, and no later than the 15th day of the current month for receipts made in the previous month.

Accommodation can be arranged by the employer with the lessor

The employer can contract the accommodation of the worker with the lessor, up to the amount of the actual expenditure under the condition that the expenses are settled in a cashless way and that the basis for the payment is credible documentation, i.e., an invoice that must be addressed to the employer.

The same as the above, the payment of tax-free receipts should be reported to the Tax Authority by submitting the JOPPD form (page B, 15.1. – mark 67) by the 15th day of the current month for receipts made in the previous month, regardless of when the accommodation service was paid for.

The employer can provide accommodation on private premises

Accommodation provided by the employer in real estate owned by the employer is also considered as non-taxable income in the actual amount. Proof of this is the appropriate authentic documentation. The cost of housing workers, together with the depreciation of the building, furniture, and other equipment, and other costs related to the use of housing, excluding utility costs, is considered non-taxable income.

Also, the payment of non-taxable receipts must be reported to the Police Administration by submitting the JOPPD form (page B, 15.1. – mark 67) by the 15th day of the current month for the accommodation made in the previous month.