YES! The BFH has ruled that unbuttered baked goods served with a hot beverage do not constitute a breakfast for wage tax purposes and therefore do not trigger taxation at the official benefit-in-kind value of a breakfast.
An employer had offered its employees bread rolls and raisin bread together with hot beverages free of charge on the company premises. The tax office assessed the monetary benefit using the official benefit-in-kind values for a breakfast. However, on 3 July 2019 (Az. VI R 36/17), the BFH ruled that while the free or reduced-price provision of meals does generally constitute taxable employment income, this particular offering did not qualify as a meal, since even a simple breakfast would have to include a spread or topping. The employer's gesture merely served to shape the workplace and create favourable operating conditions and did not have a remuneration function.
Tip: Fresh fruit made available to employees likewise does not result in taxable employment income — and it boosts your employees' immune systems for the next cold season!
Frequently asked questions
Frequently asked questions
Are unfilled bread rolls with a hot beverage considered breakfast for wage tax purposes?
No. The BFH ruled on 03/07/2019 (Az. VI R 36/17) that unfilled baked goods combined with a hot beverage do not constitute breakfast within the meaning of wage tax law. A typical component such as a spread or topping, which would be required even for a simple breakfast, is missing.
Does the official benefit-in-kind value for breakfast have to be applied if the employer only provides bread rolls and coffee?
No, the official benefit-in-kind value for breakfast does not need to be applied. According to BFH case law, this does not constitute a meal, so no taxable monetary benefit arises. Providing such items is considered a courtesy related to the design of the workplace.
What is the tax function of providing bread rolls and hot beverages on company premises?
Providing these items free of charge serves to create favorable working conditions and has no remuneration function. Accordingly, there is no taxable wage component. The measure is classified as a mere courtesy on the part of the employer.
Is fresh fruit provided to employees considered taxable wages?
No, providing fresh fruit at the workplace does not constitute taxable wages. It is treated for tax purposes in the same way as providing unfilled baked goods and hot beverages, and qualifies as a courtesy gesture by the employer.
When does breakfast qualify as a meal for tax purposes?
For wage tax purposes, breakfast requires that the baked goods be served with at least a spread or topping. Only then does it qualify as a meal, the free provision of which must be recorded as wages at the official benefit-in-kind value.