Hungary employer provided cards and vouchers | KPMG | GLOBAL

Hungary: Certain employer-provided cards, benefits incompatible with EU law

Employer-provided cards, vouchers in Hungary

The Court of Justice of the European Union (CJEU) today issued a judgment finding that certain aspects of leisure-card and meal-voucher plans—under which employers in Hungary may provide their employees with benefits in-kind under favorable tax conditions—are incompatible with EU law.


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Hungarian tax law allows employers to provide vouchers or cards to employees under advantageous tax conditions. The employees may use the cards to obtain from third parties various benefits in-kind (such as certain products and services) without having to pay those third parties. 

The European Commission brought an action against Hungary, asserting that the cards infringed on certain freedoms under EU law because the tax advantages are available only where the cards or vouchers are used.

As noted in today’s release [PDF 113 KB], the CJEU found that certain aspects of these plans are contrary to EU law. The case identifying information is: Commission v. Hungary, C-179/14 (23 February 2016)

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