The tax benefits of health insurance make this solution a smart financial strategy for companies, allowing them to optimize costs and strengthen staff protection.
Health Insurance for companies not only contributes to the health and well-being of employees, but also helps companies to reduce their tax burden and optimize their financial management. That’s because companies have additional incentives to offer health insurance to their teams.
The Corporate Income Tax Code (IRC) allows companies to deduct the costs of health insurance taken out for their employees. With the recent measure included in the State Budget for 2025, companies now have an extra incentive to provide health insurance for their employees. The amounts spent by employers on health insurance for employees and their families will be increased by 20% for corporate income tax purposes. In practice, this measure allows for a reduction in taxable profit, which responds to a long-standing demand from employers.
However, in order for the company to benefit from the tax deduction, the following requirements must be met:
- The insurance must cover all employees, i.e. it can’t be an exclusive benefit for a restricted group;
- The employer must take out equal policies for all employees in the same professional category, guaranteeing fairness and avoiding any form of discrimination;
- The company must keep a record of expenses and ensure that the insurance is properly documented in the company’s accounts.
In fact, it is essential that all tax obligations are met and that payments are in order. At Famasegur, we help your company find the best solution for offering incentives that promote employee health and well-being.
