This means that employers will no longer have to treat the work-related benefits listed below as fringe benefits from 1 July 2017.

  • Transport to and from work.

The employer’s business-related expenses made for transporting an employee who works on the basis of an employment contract between their place of residence and workplace will not be deemed to be a fringe benefit if the employee’s place of residence is located at least 50 km from the workplace or if the employer organises transport with a vehicle that has at least eight seats or a bus for the purposes of the Traffic Act.

  • Acquisition of share options.

The acquisition of share options is not classified as a fringe benefit if the underlying asset of a share option is the holding in the employer or a company that belongs to the same group as the employer, if the holding is acquired no earlier than three years as of the granting of the share option.

  • Granting medical devices to disabled employees.

Fringe benefits do not include expenses made for granting medical devices to a disabled employee the value of which does not exceed 50% of the total size of payments subject to social tax made to the employee during one calendar year.

  • Accommodation expenses of employees.

Fringe benefits do not include the employer’s business-related expenses made for the accommodation of an employee working on the basis of an employment contract if the employee’s place of residence is at least 50 km from the workplace and the employee does not own any property used as a place of residence closer to the workplace, and the expenses per accommodated employee are up to 200 euros per calendar month in Tallinn or Tartu, and 100 euros elsewhere in Estonia.