Starting from 1 January 2019, companies will be entitled to deduct as payroll expenses for profit tax purposes the value of travel packages and health resort treatment and rest tours in Russia that are purchased for employees and their family members.
According to the explanation of the Finance Ministry, it will be possible to deduct the expenses if such tours were purchased under a contract between the company and a tour operator or a tour agent for the benefit of an employee and his/her family members. If the tour was acquired in a different way, no such expenses will be permitted to be deducted for profit tax purposes.
The Russian Tax Code imposes the following restrictions:
In addition, the following payments to employees can be deducted for profit tax purposes, provided that proper documents have been drawn up:
Please contact Acsour’s specialists with respect to issues concerning how tax legislation should be applied.