In response to the introduction of an excessively low limit for the exemption of employee benefits from personal income tax under Section 6(9)(d) of the Income Tax Act (“ITA”), the Chamber of Deputies is currently debating an amendment in Parliamentary Print No. 743 that would introduce a separate limit for the exemption of so-called employee health benefits. The amendment will probably take effect from 1 January 2025.

The newly proposed limit does not replace the existing one under Section 6(9)(d) of the ITA, but will be monitored separately alongside the limit for the exemption of leisure benefits. This means that these limits will need to be recorded for individual employees:

A separate limit for employee health benefits (up to the amount of the average wage for the tax period – for 2025 this is CZK 46,557). The tax exemption applies to the following transactions:

• the purchase of goods or services of a medical, therapeutic, hygienic or similar nature from medical establishments or the purchase of medical devices on medical prescription.

The original limit for the exemption of leisure benefits (up to the limit of half of the average wage for the tax period – for 2025 this is CZK 23,279). The tax exemption applies, for example, to the following transactions:

• use of sports facilities, contribution to cultural and sporting events, provision of recreation or trips, use of pre-school childcare facilities, etc.

Since the original aggregate limit proved insufficient, we welcome an increase in the exemption limit at least for health benefits. It must be added, however, that the amendment will bring a further increase in the administrative burden associated with monitoring the various limits.