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A query was raised regarding whether loans, civil liability insurance, and Christmas hampers constitute benefits in kind. The DGT has determined that Christmas hampers and loans with interest rates below the legal rate are considered benefits in kind, whereas the classification of civil liability insurance depends on whether there is an employment relationship and if it covers professional risks.
This ruling clarifies the tax treatment of non-monetary perks, requiring employers to account for the value of certain benefits in kind when calculating employees' taxable income.
The tax team reviews your specific situation.
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