The value of benefits in kind may be freely determined by the employer and his employee in the employment contrat.
Taxes
With regard to taxes, the Grand-Ducal Regulation of 24 December 1997 amending the Grand-Ducal Regulation of 28 December 1990 implementing Article 104(3) of the Law of 4 December 1967 on income tax (determination of the average value of remuneration in kind with regard to tax on wages) governs the flat-rate evaluation of such benefits in kind.
That regulation determines the average value of remuneration in kind, a list of which has been laid down since 1 January 1998, both for male and female workers, at the following rates:
- full maintenance: € 150 per month or € 5 per day;
- full board: € 135 per month or € 4.50 per day;
- part board: € 75 per month or € 2.50 per day; part board consists in the provision of only one main meal; the mere provision of refreshments is not taken into account;
- accommodation: € 20 per month and per room for all localities in the country;
- in cases where benefits in kind are granted to the employee’s family members, the rates are reduced:
- for the spouse to 80%;
- for each child under 6 years to 30%;
- for each child aged at least 6 years to 40% at least.
(More information is available in the Tax Code – Volume 2 – 1.1.02 – pages 3 and 4).