More and more companies are offering their employees corporate fitness programmes, such as access to gyms or online health courses. This raises specific tax-related questions: does this constitute a monetary benefit for the employees, and can the employer claim a tax exemption? On 4 March 2026, the Bavarian State Tax Office (BayLfSt) published a ruling on this matter (S 2334.1.1–64/13 St36), which provides important practical guidance for employers.
Company fitness schemes are generally regarded as part of an employee’s salary
Any employer who provides their employees with access to a company fitness programme is thereby granting them a benefit in kind. The Income Tax Act classifies such benefits in kind as taxable remuneration (Section 8(2), first sentence, of the Income Tax Act). The value is normally taken to be the usual market price for a comparable service.
However, if there is no comparable publicly available offer because the corporate membership is designed exclusively for employers or their workforce, it is not possible to determine a market price. In this case, according to BayLfSt, the employer’s actual costs, including VAT and ancillary costs, should be taken as the basis.
How are the costs shared?
The BayLfSt distinguishes between three cost categories for the allocation of costs:
- Directly attributable costs Items such as individual membership fees are charged directly to the relevant employee.
- Fixed fees, which cannot be attributed to any one individual, the employer distributes them equally amongst all registered participants.
- General administrative costs are allocated amongst all employees who could, in principle, make use of the offer.
It is important to note that a monetary benefit arises as soon as you register for the programme, not just when you actually use it. Anyone who signs up but never goes to the gym has still received a benefit for tax purposes.
When does the tax exemption for health promotion apply?
Under Section 3(34) of the Income Tax Act (EStG), employers may provide their employees with additional benefits for workplace health promotion of up to 600 euros per year, tax-free. This is subject to the condition that the services meet the quality criteria of the statutory health insurance scheme (Sections 20 and 20b of Book V of the Social Code (SGB V)). However, standard gym memberships do not fall within this category.
The exemption may apply to online prevention courses on topics such as nutrition, exercise or stress management, but only if proof of attendance is provided. It is therefore essential to keep certificates of attendance or other certificates. If such proof is missing, the tax exemption does not apply, even if the course meets all the requirements in terms of content.
Please note the 50-euro exemption limit for benefits in kind
In addition to the health-specific rules, the general non-cash benefit exemption limit of 50 euros per month (Section 8(2), sentence 11 of the Income Tax Act) may also apply in certain circumstances. If the monetary benefit derived from the company fitness programme is below this limit and the other conditions are met, it remains tax-free.
Employers who offer or are planning to offer corporate fitness schemes to their employees should carefully examine the tax treatment and take their documentation obligations seriously. In individual cases, it is advisable to seek tax advice in order to ensure that both the monetary value of the benefit is correctly assessed and any potential tax exemptions are properly taken into account.
Source: Haufe: Tax
This article was created with the help of AI and has been editorially reviewed.
