Point redemption does not allow 30% reduction for generation period exceeding two years

A company asks whether delivering products via an employee points system constitutes income in kind and whether the 30% reduction for generation periods over two years applies. The DGT states that income arises upon redemption and that such reduction does not apply.

Companies using point redemption systems for employee benefits must recognise income at the time of redemption and cannot claim the 30% reduction for generation periods exceeding two years.