Russians will be able to travel at the expense of their employers from January 2019, even during the New Year holidays, Deputy Chairman of the Federation Council Committee on Social Policy Igor Fomin said, quoted by RIA Novosti.
On January 1, 2019, a law enters into force allowing employers to receive a tax rebate based on the costs they incurred paying for their employees’ vacations. The tax break will be granted upon several simple conditions: the employee’s vacation must take place in Russia, and its cost must not exceed RUR50K ($754) per person. Any further expenses of the employer are not subject to the discount.
This arrangement will apply not only to the employees, but also to their family members. The law covers the costs of tourist services and spa and resort treatment and rehabilitation in Russia for employees, their spouses, parents, and children under 18 (under 24 if they are full-time students).
The government believes the law will increase people’s opportunities for proper recreation and at the same time support domestic tourism. However, it is difficult to predict how many companies will use this tax option, given the ongoing crisis. Experts believe that state and municipal enterprises, as well as large private companies, will be interested.