The tax court has ruled that a health training course lasting several weeks is not in the predominant interest of the employer if it is primarily aimed at strengthening individual health skills and does not focus on specific work-related impairments. In this case, tax exemption of up to €600 in accordance with Section 3 no. 34 EStG may be considered.
Practical example:
The employer offered its employees a health concept consisting of several modules. This was a course of several weeks with the aim of introducing participants to a healthy lifestyle through theoretical and practical units as part of active self-care. This was based on the elements of promoting exercise, healthy eating and mental health. The tax office only allowed the expenses to be tax-free up to the amount of the tax-free allowance in accordance with Section 3 No. 34 EStG (€ 600, at that time still € 500) and recognized the excess amount as taxable wages. The employer's appeal was unsuccessful.
The tax court based its opinion on the fact that the health training is not predominantly in the employer's own business interests. The aim of the health training is to strengthen the health competence of each individual and to encourage a sustainable, health-conscious lifestyle. The focus is therefore not on providing instructions on how to change behavior when carrying out company activities for health care and health prevention. Rather, a „holistic“ approach is pursued here, which focuses on strengthening the personal health competence of each individual employee and is therefore not directed at cooperation within the company and the company community.
Conclusion: Employer benefits to improve the general state of health and workplace health promotion are tax and social security exempt up to €600 per employee per year. Health benefits are completely tax-free if they are predominantly in the employer's own business interests. Corresponding benefits can then also have a value of more than €600. However, the tax exemption under Section 3 No. 34 EStG only applies if the employer grants the benefits in addition to the wages owed under employment law. If the benefits are provided by offsetting them against the agreed salary or by converting the agreed salary, they are not tax-exempt.
Practical tip: The tax court has allowed an appeal. This has also been lodged and is pending before the BFH under file number „VI R 9/25“. In comparable cases, an appeal should therefore be lodged and a suspension of the proceedings requested until the BFH has ruled.