SECTION 1 -

free benefit in kind. This tax benefit is, however, contingent upon the respect of the applicable
regulations, in particular with respect to the conditions of use.
1.11.1.3 Brazilian Regulations
There are two forms of meal vouchers in Brazil: restaurant vouchers (vale refeição) and food
vouchers (vale alimentação). Restaurant vouchers can only be used in restaurants and similar
establishments, while food vouchers can be used in supermarkets and other food stores. These two
types of vouchers are not inter‐changeable. Cash back for unspent amounts are disallowed for both
products.
Companies that distribute meal vouchers to their employees must be registered with the
Brazilian Work Ministry. It is possible for businesses to give vouchers to only a subset of their
employees as long as the lowest paid employees receive the vouchers. The allocation of meal
vouchers cannot be reduced or suspended for disciplinary reasons.
As in France, meal vouchers are co‐financed by the employer and the employee. The
employee's contribution can be up to 20% of the face value of the voucher. In practice, however, the
employer usually assumes the full cost. The meal voucher is a 100% tax‐free social benefit for the
employee and the employer. In addition to an income tax exemption, which can be as high as 100% of
gross salaries in Brazil, the employer's contribution benefits from a 5% deduction on the company's full‐
year corporate income tax.
1.11.2 Other regulations
EC Directive 2007/64/CE of November 13, 2007 was adopted to regulate payment services,
including: (i) services that allow cash to be placed on a payment account or withdrawn from a
payment account and all the operations required for operating a payment account; (ii) the execution
of payment transactions, including the transfer of funds on a payment account with the user’s
payment service provider or another payment services provider; (iii) the execution of payment
transactions, where the funds are covered by a credit line for a payment service user; (iv) the issuance
and/or acquisition of payment instruments; (v) monetary remittances and (vi) the execution of
payment transactions where the consent of the payer to execute a payment transaction is given by
means of any telecommunication, digital or IT device and the payment is made to such
telecommunication, IT system of network operator, acting only as an intermediary between the
payment service user and the supplier of the goods and services. However, Article 3 of EC Directive
2007/64/CE specifies that it does not apply in the case of, among others:
• paper‐based vouchers; and
• services based on instruments that can be used to acquire goods or services only in
the premises used by the issuer or under a commercial agreement with the issuer
either within a limited network of service providers or for a limited range of goods or
services.
EC Directive 2000/46/CE of September 18, 2000 (the E‐Money Directive) and EC Directive
2009/110/CE of September 16, 2009 (the New E‐Money Directive) were adopted to regulate the
practice of issuing electronic money. Electronic money is defined as monetary value as represented
by a claim on the issuer, which is (i) stored on an electronic device, (ii) issued on receipt of funds of an
amount not less in value than the monetary value issued, and (iii) accepted as means of payment by
undertakings other than the issuer. The definition of electronic money was modified slightly by the
New Electronic Money Directive to be electronically, including magnetically, stored monetary value as
represented by a claim on the issuer which is issued upon the receipt of funds for the purpose of
making payment transactions (acts, initiated by the payer or by the payee, of placing, transferring or
withdrawing funds, irrespective of any underlying obligations between the payer and the payee) and
which is accepted by a natural or legal person other than the electronic money issuer.
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