In a healthy business: businesses will be offered benefits for employee fitness

State Duma deputies from 2021 propose to give tax breaks to employers who pay for fitness for their employees. Already in March, it is planned to introduce a corresponding bill to the lower house - tax will not be paid on amounts up to 30 thousand rubles per person per year. The co-author of the document, member of the State Duma Committee on Economic Policy, Andrei Vetluzhskikh, told Izvestia about this. United Russia has already approved the document at the expert advisory council. The concept was also supported by the Ministry of Health.

Measures to improve working conditions

Employers must take some measures every year to improve working conditions for their employees. Companies are required to do this at their own expense. The list of activities that companies can carry out as part of these events is given in the order of the Ministry of Health and Social Development of Russia No. 181n dated 03/01/2012. This list contains activities that are aimed at developing physical education and sports among company employees. For example, costs to improve working conditions include:

• Compensation for employees to pay for the gym in sports clubs or fitness centers;
• Organization and conduct of physical therapy and industrial gymnastics;
• Organization of gyms and clubs for sports activities for employees directly at their place of work.

It is not necessary to carry out absolutely all of them. Each company has the right to choose those activities that, from their point of view, are the most effective and appropriate. Then approve your own list. It is important to take into account that the total costs of implementing such measures do not exceed 0.2% of all production costs (226 Labor Code of the Russian Federation). Companies are not required to bear large costs. One of the activities included in this list may be payment for sports activities, for example, partial or full compensation for the cost of subscriptions to sports clubs or sections. Having decided to pay for the gym to employees, it is important to properly formalize and take into account such compensation.

Important! Compensation for payment for sports activities carried out at the expense of the employer can be paid from the current profits of the company, or from the funds of the created reserve fund. The company decides from which sources the payment will be made independently.

Income tax

Regarding income tax, the Ministry of Finance stated the following. The organization's expenses for ensuring normal working conditions and safety measures provided for by the legislation of the Russian Federation are included in other expenses associated with production and sales (subclause 7, clause 1, article 264 of the Tax Code of the Russian Federation). At the same time, paragraph 29 of Article 270 of the Tax Code of the Russian Federation provides that expenses for paying for classes in sports sections, clubs or clubs, as well as other similar expenses made in favor of employees, do not reduce taxable profit.

Since activities related to physical education and sports are carried out outside working hours and are not caused by production activities, expenses in the form of payment to employees for the cost of such activities are not taken into account when forming the tax base.

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Accounting. Postings

To reflect compensation for sports activities for employees, account 73 “Settlements with personnel for other operations” is used. In this case, compensation expenses are included in other expenses.

Fitness and football. How are they similar and how are they different?

It would seem that it makes no difference what type of physical activity an employee engages in. He may enjoy bobsleigh, table tennis, or just pedal on an exercise bike.

Are any of these preferences more or less likely to influence a director's decision to compensate expenses? From a legislative point of view, no, because neither sports nor fitness are regulated by labor legislation within the framework of this topic. We can say that it is precisely this factor that unites them.

But in reality, a lot depends on the personal preferences of the director. The author of this article managed to talk with one of the managers who, without hiding it at all, hires only those who are seriously involved in any kind of sport. Here's what they told us:

“As a matter of principle, I do not give employees a large salary. They won’t work then.”

— Do your accountants also work on a salary-bonus basis?

“Yes, we introduced a KPI system for them. Now they are trying not to mess up the submission of declarations. And before, as a report, there was always some kind of fine. Once we were fined almost 40 thousand rubles, can you imagine”?

- I imagine this happens. Can you say that your team is athletic? I know that playing sports can be encouraged by the employer in the form of compensation for the cost of a subscription to the same gym...

“No, I don’t give them money for these purposes, but I encourage them to be “sportsmanlike.” For example, my KPI includes additional payment to an employee for playing sports. In particular, I really love hockey and skiing; I do this myself in my free time. If my employee practices one of these, then he can count on me for an amount of 2,000 rubles “on top” of his monthly salary. So to speak, because we have something to talk about (laughs).”

— A very interesting approach... But what about accountants who, let’s say, hardly have a great desire to play hockey? This sport is not particularly popular among women.

“Well, then all they have to do is skis (laughs again)! If any of them prefers something else, for example, some kind of bobsled or curling, then they will receive an additional 1000 rubles from me.”

- Your generosity knows no limits!

“But of course. I’m not like that, life is like that!”

We had a very strange dialogue. We got the impression that it never occurred to our interlocutor to compensate for the expenses of playing sports. And this is taking into account the fact that he “in every possible way encourages” doing it. Unfortunately, we did not have the opportunity to talk with any of his subordinates and ask some interesting questions, however, we dare to assume that they either laugh at their director, or for 1-2 thousand rubles “from above” they are trying to please him. Both laughter and sin.

And God be with them, with all these “sports” directors! We need to work, right? And how nice it is to perform your official duties with convenience. By the way, “stingy” directors really like to buy something cheaper. We have an excellent solution to this problem - take advantage of free access to 1C Online for 14 days and decide to rent. You’ll save the director money, and you won’t deprive yourself! Just look, and he will forget that you don’t play hockey!

About the maximum amount of compensation

As we have already understood, the employer, at his discretion, can encourage “sports” employees, based on the fact that not a single letter of the law obliges him to do this. Based on this, we can assume that the amount of compensation in each specific case may differ. Last year, deputies of A Just Russia proposed to approve a law according to which 25% of the cost of a subscription would be borne by the employer, and the other 25% by the federal budget.

And this is only if the employee has continuous work experience at his current place of work for at least 3 years. The deputies proposed this wording for the reason that they consider these payments to be somehow, but still a “burden” that can negatively affect the financial capabilities of the organization.

The law has not yet entered into force and is unlikely to enter into force soon. The fact is that there are already a lot of problems with the federal budget and the money is being directed to other needs. Leaving only 25% to employers is also not serious. Perhaps that is why the matter is stalled.

Let's take a closer look at the example

In February 2021, accountant O.P. Petrova was paid compensation for paying for a gym at the fitness center. An additional agreement was drawn up to the employment contract with Petrova, according to which the employee was entitled to compensation in the amount of 2,500 rubles.

Let's consider the procedure for conducting business transactions:

Blog about taxes by Vladimir Turov

Good afternoon, dear colleagues!

Let's talk about the letter of the Ministry of Finance of the Russian Federation dated October 16, 2021 No. 03-01-10/79312 . What prompted me to write this article? President of the Russian Federation Vladimir Vladimirovich Putin once again called on businessmen to take care of the lives and health of their employees. In particular, he called for the introduction of a sports instructor in every organization. Before this, there were initiatives: to organize a first-aid post in every organization, and the Social Insurance Fund even promised to compensate them with some money. There was also an idea to take care of parents: to organize a mother and child room in each organization at the expense of the employer, and for micro-businesses they promised some kind of compensation, and even then, not completely. Our President also announced that it is necessary to have sports instructors so that employees feel healthy at work and that there will be corresponding benefits. But, apparently, the Ministry of Finance does not hear the President... Why do I think that the Ministry of Finance did not hear the head of state? Let's return to this letter from the Ministry of Finance and talk about sports.

What is the essence of the letter from the Ministry of Finance?

So, according to the letter from the Ministry of Finance: if you, the employer, pay for your employees for fitness or pay for your employees for any sports activity in any sports clubs and sections, then on all the money that you paid for your employees, you are required to pay personal income tax - 13%, insurance contributions – 30%. Also, you cannot reduce income tax by the amount of these payments, that is, you will pay another 20% from this money. And the only thing the Ministry of Finance allowed was not to pay VAT on these payments. Otherwise they would have added VAT to us here, you know?

About personal income tax : “The specified article (Article 217 of the Tax Code of the Russian Federation) does not contain provisions providing for exemption from taxation of amounts reimbursed by an organization to employees for the cost of playing sports in clubs and sections, and such income is subject to personal income tax in the prescribed manner.”

About insurance premiums : “Thus, payment for organizing employee classes in a fitness club is subject to insurance premiums in the generally established manner as a payment made within the framework of the labor relationship between the employee and the employer, regardless of the source of this payment and the classification of these expenses as expenses that do not reduce tax corporate income tax base."

About expenses : “At the same time, paragraph 29 of Article 270 of the Code stipulates that expenses for paying for classes in sports sections, clubs or clubs, as well as other similar expenses made in favor of employees, are not taken into account for tax purposes of the profits of organizations.”

About VAT : “In accordance with subparagraph 1 of paragraph 1 of Article 146 of the Code, the object of taxation of value added tax is transactions involving the sale of goods (work, services) on the territory of the Russian Federation. At the same time, according to paragraph 1 of Article 39 of the Code, the sale of goods, work or services is recognized as the transfer of ownership of goods, the results of work performed by one person for another person, the provision of services by one person to another person.

In this regard, the organization is not subject to value added tax in relation to the costs of paying for physical culture and health services actually provided by third-party organizations to the employees of this organization, since the sale of these services is not carried out by this organization.”

What is my attitude towards such things? It is quite simple: we do not have a stable state policy in the field of both economic development and basic things in the form of execution of Presidential Decrees. One gets the feeling when you analyze the regulatory framework and compare it with what the President said before... It seems that our President either does not read these laws and does not know what is written in them. Because if he had read the laws and knew what was written in them, he would have called the officials and said: “Guys, I promised this, why does the law contradict my promise? Let's fix this situation."

A question for you, colleagues: do you think the actions of ministries and departments contradict the words of the President? Does this add authority to the President or not?

Nowadays, I am faced with the fact that if someone supports the actions of the Government, officials or the President, then he is like a “black sheep”. It is no longer fashionable for us to support the actions of the Government and the President. I do not adhere to this position. Personally, I think that if businessmen are being skinned, and people are also being skinned, then I say so. But, at the same time, if I see that there is something good, some positive movement, then I personally will praise it for making the life of a Russian citizen and a Russian businessman easier.

I look forward to your comments.

Thanks guys, good luck in your business!

Link to documents:

Letter of the Ministry of Finance of the Russian Federation dated October 16, 2021 No. 03-01-10/79312

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Vladimir Turov

Head of legal practice, practicing and leading specialist in tax planning, building individual tax schemes and holdings, optimizing financial flows.

Procedure for processing compensation payment

Important! Compensation for gym workers can be provided for in an employment contract, or an additional agreement to it, or a collective agreement.

To do this, the contract can provide the following clause: “The employer pays employees monthly compensation for the cost of sports in any (fitness centers) and sections in the amount of _____ rubles, but no more than the actual costs incurred by the employees for the corresponding month. The payment is made within the salary payment period upon provision to the Employer of a copy of the agreement concluded between the employee and the fitness club, as well as copies of documents confirming actual sports expenses (payment order, payment receipt, checks, etc.).”

Insurance premiums

The same goes for insurance premiums. As is known, insurance premiums are levied on payments and other remunerations accrued, in particular, within the framework of labor relations (subclause 1, clause 1, article 420 of the Tax Code of the Russian Federation). The exception is the payments listed in Article 422 of the Tax Code of the Russian Federation. Reimbursement for sports activities is not mentioned in this article.

In this regard, payment for organizing training sessions for employees in a fitness club is subject to contributions in the general manner as payments made within the framework of labor relations.

Let us note that the position of the Ministry of Finance is contrary to judicial practice. As the Supreme Court pointed out, reimbursement of expenses for sports activities is not related to the working conditions of employees and does not depend on the work functions they perform. Therefore, such payments are not included in the base for calculating contributions. (See “Supreme Court: Employer-Reimbursed Fitness Center Expenses Are Not Deductible.”)

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The legislative framework

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Fitness for employees with tax benefits: is it possible?

Implementation of measures aimed at the development of physical culture and sports at Strekoza LLC, including: - compensation to employees for sports activities in clubs and sections - up to 10,000 rubles. in year. As a rule, such a list is approved by organizations for a year.

But you can supplement it throughout the year. The Labor Code states that the costs of employers (with the exception of state unitary enterprises and federal institutions) for improving conditions and labor protection should be at least 0.2% of the costs of producing products (works, services). The Labor Code does not say what expenses this standard should be calculated from.

But it is more logical to focus on accounting data.

Today, employers can pay their employees compensation for sports activities in gyms and sections in order to implement a program for the development of sports and physical culture in work teams. In the article, we will consider from what sources the payment for the gym is made to employees, whether such expenses can be recognized for tax purposes, and whether there is a limit on the amount of such compensation.