Performance and reward taxation

Performance and reward taxation

Tax-Efficient Structuring of Employee Benefits and Incentives

In today’s competitive labor market, employers across Slovakia are seeking innovative ways to attract and retain top talent. One of the most effective tools is a well-designed system of non-monetary employee benefits. From cafeteria plans to company cars and wellness allowances, the range of available perks continues to expand as does the complexity of their tax treatment.

 

At BDO, we help employers make the most of their performance and reward schemes by ensuring they are both attractive and tax-efficient. With the right structure, companies can significantly reduce the overall tax burden on benefits—cutting costs without affecting employees’ net income.
 



How We Help Employers
  • Assessment and Optimization of Employee Benefits
    Structuring popular benefits such as over-limit meal vouchers, accommodation, employee transportation, wellness contributions, or sports and culture passes to minimize tax and social contributions.
  • Advisory on Emerging and Complex Reward Mechanisms
    Guidance on non-traditional benefits like employee stock ownership plans (ESOPs), cryptocurrency-based rewards, bicycle programs, and other modern incentives.
  • Compliance with Slovak Tax and Employment Law
    Ensuring all benefits—standard or unconventional—are aligned with current Slovak tax regulations and labor code requirements.
  • Cost Efficiency Without Compromising Net Pay
    Structuring benefits to reduce employer expenses while maintaining or improving the perceived value for employees.

 

BDO offers specialized advisory on employee benefit taxation in Slovakia—ensuring compliance, cost savings, and a competitive edge in recruitment. Let us help you build a smarter, tax-optimized reward strategy.

 

Our experts will advise you on the tax-levy regime of your current benefit scheme, or how it can be optimized in terms of taxes and levies.