Why educate yourself at work?

Development is constantly moving forward, new technologies are emerging, more technically demanding production systems are growing, new markets are opening up, and competition is increasing accordingly. This requires well-trained employees. On top of that, they can gain certain advantages over their competitors.firemní zaměstnanci.jpg

Are there any tax advantages?

If the employee\’s education is related to the employer\’s business, including the cost of the employee\’s secondary or higher education, it is a tax-efficient expense. However, the really important requirement here is that the education must be related to the company\’s objectives. If it is an educational expense on the part of the employee, it is tax-free income that does not affect income tax or insurance premiums. If an employee of your company attends a school of his/her personal choice and continues his/her educationin a specialized field, not only tuition and other fees but also study assistance expenses are taxable. For example, if a representative director of a limited liability company attends more than one technical school, the tuition is a tax-efficient expense, i.e., an expense that can be deducted from taxes.

What about foreign language studies?

Yes, companies can use language schools, but again, everything must be related to the employer\’s business, i.e., your business as a company.žena se vzdělává.jpg

This allowance can be based on an agreement with the student to work for your company after graduation. This incentive allowance is a limited allowance paid on a contractual basis. What does this mean? It means not only a stipend, but also an allowance for lodging, meals, and public transportation to the place where the prospective employee will study. This allowance is a tax expense for the employer and taxable income for the prospective employee, the student, within the limits described above.

What about subsidies?

Yes, this option is also available. Employers can receive financial assistance from European Union funds for the training of their employees. More information can be found on the website of the Czech Ministry of Labor and Social Affairs (MPSV).