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A taxpayer has enquired whether the increased maternity tax deduction can be applied when their employer pays for nursery fees using 'nursery vouchers'. The Directorate-General for Taxes (DGT) has ruled that this depends on whether the payment constitutes a mere payment mediation (cash remuneration) or an exempt benefit in kind.
This ruling clarifies the distinction between cash remuneration and benefits in kind regarding nursery vouchers, affecting how maternity tax relief is calculated for employees receiving such benefits.
The tax team reviews your specific situation.
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