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A query was raised regarding whether company-paid nursery fees for children under three constitute an exempt benefit in kind. The DGT ruled that such payments are exempt if the company is contractually or collectively obliged to provide them; however, they are treated as taxable cash income if the company merely acts as a payment intermediary or provides a reimbursement.
This ruling clarifies the tax treatment of childcare benefits, distinguishing between mandatory employer-provided benefits and simple expense reimbursements.
The tax team reviews your specific situation.
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