Equivalents that are paid out are not subject to income tax

According to Art. 21 sec. 1 point 13 of the Personal Income Tax Act, tax-free are cash equivalents for tools, materials or equipment used by employees in the performance of their work, constituting their property.

Paid equivalents - exception

In addition, employers often pay employees equivalents for unused vacation. This issue is regulated by Art. 12 sec. 1 of the PIT Act:
Art. 12. 1. Revenues from the service relationship, employment relationship, homework and a cooperative employment relationship shall be deemed to include all kinds of cash payments and the monetary value of benefits in kind or their equivalents, regardless of the source of financing these payments and benefits, in particular: basic salaries, remuneration for overtime, various types of allowances, awards, equivalents for unused leave and any other amounts, regardless of whether their amount has been determined in advance, and also cash benefits paid for the employee, as well as the value of other unpaid benefits or benefits partially payable.

However, the holiday equivalent is not included in the catalog of income exempt from income tax, and therefore is subject to personal income tax.

Employer costs - equivalents

It should be borne in mind that the equivalents paid by the employer constitute tax deductible costs, it results from Art. 22 sec. 1 point 6ba of the PIT Act, which says that the following are considered to be tax deductible costs:
Receivables from the titles referred to in Art. 12 sec. 1 and 6, and cash benefits from social insurance paid by the workplace are tax deductible costs in the month for which they are due, provided that they were paid or made available within the time limit resulting from the provisions of labor law, contract or other legal relationship between the parties . In the event of failure to meet this deadline, the duties shall be governed by Art. 23 sec. 1 point 55.