A law has been enacted allowing companies that compensate their employees for vacations spent in Russia to deduct such expenses for profit tax purposes.
Companies will be able to include in their expenses payment for the vacations of employees and their families (spouses, parents, and children under 18 y. o., or under 24 y. o. who study on a full-time basis) when such vacations are spent in Russia. The expenses are limited to the amount of RUB 50,000 per employee annually. The amount can be spent to pay for tickets, accommodation, treatment center services and excursion services.
It is important to note that in accordance with the amendments made to the Russian Tax Code, this category of expenses is subject to limitations: the compensation of tourism services, together with expenses from voluntary private insurance contracts and medical care contracts must not exceed 6% of the annual payroll of all the company’s employees.
The amendments made apply to contracts for tourist services concluded starting from 1 January 2019.
For more information, please contact Acsour’s accountants.