The State Tax Service clarified on 16 September 2026 the tax implications when an employer reimburses or directly pays for a mandatory pre-employment medical examination. The guidance confirms that such expenses, when incurred in compliance with labor legislation requiring medical checks for certain positions, are not considered taxable income for the employee. Consequently, they are exempt from personal income tax (PIT) and military tax withholding, provided the examination is mandated by law and the employer retains proper documentation.
Key Takeaways
- Statutory Requirement Basis: The exemption applies only to medical examinations required by the Labor Code or sector-specific regulations (e.g., hazardous work, food industry).
- Employer Documentation: The employer must keep the referral letter, medical conclusion, and proof of payment to justify the non-taxable treatment during audits.
- Voluntary Exams Taxable: If the medical exam is not legally mandated, any employer payment constitutes taxable benefit in kind.
Disclaimer: This article is compiled and summarized by the AI based on publicly available information and is for general information purposes only. It does not constitute any form of formal tax advice, legal opinion, or basis for performance. Please consult a qualified professional tax advisor or legal counsel for tax advice.
Source: Read Official Announcement