Income paid by the employer is exempt from the IRS
Amounts corresponding to housing rent borne by the employer will be exempt from the IRS and Social Security, according to a review of the income agreement signed on Saturday. Companies that offer their own real estate to workers who enjoy IRC benefits.
Amounts corresponding to residential rent, which are generally taxed by the IRS as in-kind income, will be exempt from taxes and will also not count toward Social Security deductions. This measure arises from the review of the Income and Competitiveness Agreement, signed on Saturday between the government and the social partners (excluding CIP and CGTP).
For businesses that provide housing on their own property and in order to encourage housing assistance grants, a reduction in IRC is expected through acceleration of property tax-related deductions for employee housing.
The document, obtained by Negócios, states “exemption from the tax authority and social contributions applied to income in kind (…) in connection with the provision of free or burdensome permanent housing to workers by the employer.
Subsidies for rent payments, which would not be covered, will be excluded and the exemption will apply to both rental and sublease housing.
The relief will be limited to the amounts expected for the Affordable Rental Support Program, as specified in the agreement. On the other hand, it cannot be applied to workers who are part of the employer’s family; To members of employers’ boards of directors; Nor for workers who directly or indirectly own a share of no less than 10% of the capital.
With regard to housing, the Agreement provides for exemption for tax and contribution purposes from amounts mobilized within the scope of the Workers’ Compensation Fund (FCT), for workers’ housing solutions.
Here will be the recommendation
“Writer. Analyst. Avid travel maven. Devoted twitter guru. Unapologetic pop culture expert. General zombie enthusiast.”