(2021) What applies when meals are provided by the employer?

During off-site activities such as training events, seminars, conferences, sales events, etc., participants are often provided with meals at the employer's expense, either directly by the employer or at their instigation by a third party, e.g. the conference hotel or a catering company.

The beneficiary is taxed by the authorities for this benefit.

(1) Until 2013, the monetary benefit of the free meal was taxed. This was done using the official rate for benefits in kind, provided it was a "standard meal" worth no more than 40 Euro, or at the actual value, in which case the small allowance for benefits in kind of 44 Euro applied. However, the relevant meal allowance could be deducted in full as business expenses or reimbursed tax-free by the employer.

(2) Since 2014, it has been the other way around: now the relevant meal allowance is reduced and the taxation of the benefit is waived. The reduction is 20% for breakfast and 40% for lunch or dinner of the full meal allowance. Taxation at the official rate for benefits in kind only occurs if the employee cannot deduct meal allowances as business expenses, e.g. for absences of less than 8 hours or for long-term off-site activities after the three-month period. In addition, the limit for "standard meals" has been increased from 40 Euro to 60 Euro.