Eco-cheques

Maximum EUR 250/year

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Social security treatment

No NSSO contributions
Employee Taxation

Not taxable
Employer deductibility

Not deductible

Social Security Treatment Description

Eco-vouchers are exempt from social security contributions under the following cumulative conditions:

a) eco-cheques are not granted as a replacement for or conversion of salary, bonuses, benefits in kind or any other benefit or supplement to any of the above (whether or not subject to social security contributions), with the exception of meal vouchers;

b) the granting of eco-cheques must be provided for in a collective bargaining agreement concluded at sector or company level. If such an agreement cannot be concluded due to the absence of a trade union delegation or when it concerns a category of personnel not usually covered by such an agreement, the granting may be governed by an individual agreement. This agreement must be in writing and the amount of the eco-cheque may not exceed the amount provided for by collective agreement in the same company;

c) the maximum nominal value of the eco-cheque with a maximum amount of EUR 10 per eco-cheque, as well as the frequency of the granting of eco-cheques during a calendar year, must be mentioned in the collective bargaining agreement or the individual agreement;

d) the eco-cheque is issued in the employee's name;

e) the eco-cheque must clearly state that its validity is limited to 24 months and that it can only be accepted for the purchase of products and services of an ecological nature included in the list annexed to CBA no. 98/10 concluded within the National Labour Council;

f) eco-cheques may not be exchanged in whole or in part for cash;

g) the total amount of eco-cheques granted by the employer may not exceed EUR 250 per employee per year.

If the eco-cheques do not meet the above conditions, normal social security contributions are payable on their value.

Since 1 January 2022, eco-cheques can only be issued in electronic format (made available to the employee in an eco-cheque account managed by an approved vendor). The number of eco-cheques in electronic form and their gross amount must be shown on the employee's payslip. Before using electronic eco-cheques, the employee must be able to check the balance and the period of validity of the cheques. Lastly, the use of electronic eco-cheques must not incur any costs for the employee (except in the event of theft or loss).

Worker Taxations Description

Eco-cheques are considered to be tax-exempt social benefits under the following cumulative conditions:

a) the granting of eco-cheques must be provided for in a collective bargaining agreement concluded at sector or company level. If such an agreement cannot be concluded, the granting may be governed by an individual agreement;

b) the maximum nominal value of the eco-cheque with a maximum amount of EUR 10 per eco-cheque, as well as the frequency of the granting of eco-cheques during a calendar year, must be mentioned in the collective bargaining agreement or the individual agreement;

c) the eco-cheque is issued in the employee's name;

d) the eco-cheque must clearly state that its validity is limited to 24 months and that it can only be accepted for the purchase of products and services of an ecological nature included in the list annexed to CBA no. 98/10 concluded within the National Labour Council;

e) eco-cheques may not be exchanged in whole or in part for cash;

f) the total amount of eco-cheques granted by the employer may not exceed EUR 250 per employee per year;

g) the cheque may not be granted as a replacement for or conversion of salary, bonuses, benefits in kind or any other benefit or supplement to any of the above.

If the grant of the eco-vouchers does not meet the above conditions, it is considered to be taxable benefit.

Employer Deductibility Description

If eco-cheques are considered to be tax-exempt social benefits, they are not deductible as professional expenses.

However, if eco-cheques are considered to be a taxable benefit, they are deductible as professional expenses (provided that it is included in the annual tax statements (failure to do so will result in the application of the special tax on secret commissions of 100%, which is not deductible as a professional expense for corporation tax purposes)).