At many of our clients, we experience misapplied fringe benefit records, which do not meet the expectations of tax authorities and could cause a problem in the future. For this reason, we would like to call your attention for some practical information.
The time of the benefits provided
Based on the Act CXVII of 1995 on Personal Income Tax section 69, subsection 5, the tax shall be declared and paid by the provider, shown as a liability for the month when the benefit was provided, according to the provisions and by the deadline set out in the Act on the Rules of Taxation concerning the declaration and payment of taxes and contributions in connection with payments paid and benefits provided.
Records – date, signature
On the records, only the date and signature can be a dependable proof of the the time of benefits provided.
At this point we call your attention, that the record samples provided by the voucher supplier companies could be inaccurate, since the date of benefits provided is not shown at all or not in every cases.
In 2011, most of the fringe benefits have a reduced tax rate until a certain amount per month and in this manner also the date and signature provided record could prove dependably that the non-wage benefits are paid monthly and not in one amount.
We have to see, that the records without date and employees’ signature, the employer could not prove, that the benefits provided had been complied with the limits specified in the law, consequently questioning the right application of the reduced tax rates.
In relation with the above mentioned, we note, that the Act on personal income tax section 9, subsection 2, point b specify the date of acquisition of income shall mean in the case of money, the day when it is received, in the case of things, securities, drafts, checks and other similar instruments, the day of transfer of title of ownership or - if this occurs earlier - the day when it is taken possession of by the private individual or another person on his behalf […]. We have already mentioned, that the tax shall be declared and paid by the provider, shown as a liability for the month when the benefit was provided, according to the provisions and by the deadline set out in the Act on the Rules of Taxation concerning the declaration and payment of taxes and contributions in connection with payments paid and benefits provided.
Brella Zoltán – Máriás Attila – Nemes János