This is primarily Act No. 586/1992 Coll., on Income Taxes, as amended, where, in particular, Section 6(9)(d) sets out the rules for the exemption of non-cash benefits provided by an employer to an employee or a member of his or her family from the cultural and social needs fund, from the social fund, from profit (income) after taxation, or on account of expenses (costs) that are not expenses (costs) for the achievement, provision and maintenance of income, in the following forms:
– the purchase of goods or services of a medical, therapeutic, hygienic or similar nature from medical establishments or the purchase of medical devices on prescription; such supplies are exempt in aggregate up to the amount of the average wage for the tax year,
– the use of educational or recreational facilities, the provision of a holiday or tour, the use of pre-school childcare facilities, including kindergartens under the Education Act, the employer’s library or physical education and sports facilities, or the provision of a contribution to cultural or sporting events or a contribution to printed books, including picture books for children, other than books in which advertising exceeds 50 % of the surface area; these transactions are exempt in aggregate up to half of the average wage for the tax year.
