The Support for Socially Responsible Employers

The PMR President Vadim Krasnoselsky signed a law with amendments to the law "On measures of state support in connection with the introduction of state of emergency and restrictive measures aimed at preventing the spread of coronavirus infection caused by new type of COVID-19 virus in 2020 and 2021". The Supreme Council adopted the law on the 24th of February.

The money that the company allocates for tests or medical examinations of employees will be exempt from income tax.

Many employers in the past year faced a situation where it was necessary to take emergency measures to prevent the spread of coronavirus infection in the workforce. In particular, enterprises used their own money to buy disinfectants and personal protective equipment. There are organizations that paid for COVID tests from their own funds.

Under the previous legislation, the money that the company allocates for testing or medical examination of employees is considered material benefit or income of the employee. These funds, like wages, were subject to income tax. The chairman of the Committee on Economic Policy, Budget and Finance Viktor Guzun proposed a legislative initiative and proposed to abolish the tax on this kind of material benefit in order to exclude the potential possibility of taxation.

According to the deputies, such a measure of state support will stimulate socially responsible employers who spend their own funds to combat the spread of coronavirus infection.