What should an employer know?
Occupational dental care can be a tax-free fringe benefit for the employee and at the same time a tax-deductible expense for the company. Therefore, for an employer, it can be a fringe benefit that supports staff well-being as well as being economically attractive.
Tax treatment is determined in accordance with current legislation and instructions of the Tax Administration.
Dental care provided by the employer can be a tax-free benefit for the employee when the conditions for tax exemption are met.
From the perspective of tax exemption, it is essential, among other things, that the benefit is part of the voluntary occupational health care provided by the employer, customary and reasonable, and offered equally to staff. In addition, the benefit is not granted instead of monetary salary.
Occupational dental care must also be related to supporting employees’ health, well-being or work ability.
The content of the service is defined on a company-specific basis. Occupational dental care can include, for example:
The company defines the service package and the annual maximum amount in the agreement.
When occupational dental care meets the conditions for a tax-free fringe benefit, its costs can be tax-deductible for the company.
Tax deductibility means that the cost can be deducted from the company’s taxable income. Thus, the tax treatment of occupational dental care can also affect the actual cost of the service for the company.
The content and scope of occupational dental care are defined on a company-specific basis, allowing the company to design the fringe benefit to suit its own needs.
At the same time, it is important to ensure that the service is implemented in the manner required by taxation.
Up-to-date information and more detailed terms should always be verified from the Tax Administration’s instructions concerning the taxation of fringe benefits.
Learn more about occupational dental care and request a quote for your company.