Meal Vouchers for Partners and Unpaid Board Members: What Are the Tax and Social Security Implications?

The provision of meal vouchers is a common practice among businesses seeking to offer additional benefits to their employees. However, when the recipients are company partners or members of the Board of Directors (BoD) who do not receive remuneration, important questions arise regarding the tax and social security treatment of this benefit.

The Basic Tax Framework

According to Article 14, paragraph 1, point (g) of Law 4172/2013, the value of meal vouchers of up to €6 per working day is exempt from income tax, provided that the applicable legal requirements are met.

Furthermore, Article 13 of the same law regulates the tax treatment of benefits in kind, while Circular POL.1219/2014 provides clarifications regarding the application of the relevant provisions.

What Applies to Company Partners and Unpaid Board Members?

Being a company partner or a member of the Board of Directors does not automatically entitle an individual to receive meal vouchers under the favorable tax regime.

More specifically, it is necessary to determine whether the partner or board member actually provides services to the company, whether an employment or other relevant professional relationship exists, and whether the benefit is directly linked to their professional activities.

This distinction is particularly important, as different rules may apply to a partner who is also an employee, a partner who actively participates in company management, and a board member who holds only a corporate position without providing services.

What Are the Social Security Implications?

From a social security perspective, the exemption of meal vouchers from social security contributions depends on specific conditions. These include their provision on a monthly basis, their use to cover meal expenses during working hours, and compliance with the maximum amount of €6 per working day.

Therefore, exemption from social security contributions should not be automatically assumed for company partners and unpaid board members who do not have an employment relationship with the company.

What Should Businesses Consider?

Before providing meal vouchers to company partners or unpaid board members, businesses should carefully examine the following:

• The legal form and organizational structure of the company.
• The actual status, responsibilities, and activities of the recipients.
• The existence of any employment or other professional relationship with the company.
• The requirements for income tax exemption and exemption from social security contributions.
• The appropriate corporate approval, supporting documentation, and accounting treatment of the expense.

Conclusion

Providing meal vouchers to company partners and unpaid board members is not a straightforward process that can necessarily be treated in the same way as benefits provided to employees.

Each case requires an individual assessment to ensure proper tax and social security treatment and to prevent potential financial liabilities for the business.

Access to accurate information and timely professional advice are essential for businesses seeking to provide benefits to individuals involved in their operations and management while ensuring compliance with the applicable legal framework.