Cadhoc has sound support in the existing legislation.
The tax on dependent activity exempts non-monetary performance provided by the employer to employees from the fund of culture and social needs, social funds, profit after tax or to the expense of expenditures which do not represent the expenditures related to the achievement, assurance and preservation of income, in the form of the use of recreational, medical and educational facilities, physical education and sports facilities, or in the form of a contribution to cultural and sporting events. However, in the case of provision of recreation including tours, a maximum of CZK 20,000 per calendar year is exempt from the value of the employee’s non-monetary performance value. The performance provided by one employer to employee’s family members is also considered performance as stipulated under Section 6 ss. 9d) of the Income Tax Act no. 586/1992 Coll. In the case of gifts provided in connection with a work or life anniversary and for an extraordinary performance (as listed under Section 14 of Regulation no. 114/2002 Coll.), a non-monetary performance up to CZK 2,000 per year for each employee is exempt from tax.