The lump sum for catering will be a fully tax-deductible expense for the employer, and it will not be subject to taxation or social and health insurance contributions on the part of the employee. However, it cannot exceed 70 % of the regulated meal allowance, which amounts to CZK 72 per day in 2020.

In comparison to meal vouchers, the employer will pay out the appropriate allowance directly to the employee, but no contribution will be deducted from the employee’s salary.***

Tomáš Hunal

PwC | Daňové a právní služby