News Flash No. 38/2023
Following further study and clarification, it is informed that the contribution paid to the institution Previr-Pastor by way of insurance premiums for non-occupational accident risk, are considered as compensation in kind, not subject to contribution, so the related amount will contribute to the amount of exempt fringe benefits up to the threshold-limit of 258.23 euros, or the broader threshold limit of 3,000.00 euros provided by the legislature for 2023 only for workers with dependent children.
Consequently, if the sum of the fringe benefits, including also the contribution paid to the Previr-Pastore entity, exceeds the exempt threshold-limit, the entire value will be considered for the purpose of determining the amount to be subject to taxation, which will differ from the amount to be subject also to contribution in the presence of compensation in kind related to insurance premiums not subject to social security contributions (premiums subject only to solidarity contribution, which is precisely the contribution paid to the Previr-Pastore entity).
At the adjustment stage, if the total amount of compensation in kind is higher than the relevant exemption limit, the amount of insurance premiums will be considered as deductible expenses to the extent of 19% on a maximum amount of 530.00 euros, which increases to 750 euros for premiums related to the risk of death that protect people with severe disabilities.