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What is the tax treatment of the expenses of the COVID tests incurred by the employer for employees?

When determining the tax regime applicable to the consideration of the COVID tests borne by the employer for his employees, it is necessary that the employer examine the purpose for which the tests were carried out.

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When determining the tax regime applicable to the consideration of the COVID tests borne by the employer for his employees, it is necessary that the employer examine the purpose for which the tests were carried out, i.e. to ensure specific measures aimed at protecting the health of employees and performing work under conditions of safety and health at work.

According to the provisions of the tax Code, the equivalent of the expenses incurred by the employer/payer in carrying out medical tests to diagnose COVID-19 infection on its own initiative for individuals who earn wages and pay-like income, in order to detect and prevent the spread of SAR-CO-2, in order to ensure the safe and healthy working conditions, during the establishment of emergency or alert state, under the law, are advantages granted to employees, which are included in the income category and similar to wages.

Therefore, from a corporate tax point of view, the consideration of expenses incurred by the employer/payer in carrying out medical tests to diagnose COVID-19 infection, on its own initiative, for individuals earning wages and similar to those, are deductible expenses for determining the tax result, and from the point of view of income tax, they are non-taxable income which is not included in the scope of social contributions.