Gifts to employees: Your employee gifts will remain tax-free in 2023

Geschenke an Mitarbeiter: So bleiben Eure Mitarbeitergeschenke in 2023 steuerfrei
Would you like to give presents to your employees and say thank you for their commitment in this way? In some cases, the tax office will even come to you. Gifts are tax-free under certain conditions. In this article you will find out what you have to consider when giving gifts, what the maximum limit is for employee gifts and what tips and tricks you can use to make your employees and yourself happy.
Disclaimer: We at Theyo are not tax experts and cannot guarantee that the information in this article is correct, up-to-date or complete. When in doubt, always get help from a tax advisor.

When are employee gifts tax-free and what does that actually mean?

Tax free means tax deductible. In other words, under certain conditions you can deduct employee gifts from tax as business expenses. In order for this to work, the same applies to all tax and financial issues: document your expenses well, including gifts, and keep the relevant receipts. It is best to make a careful note of the reason for the gift. So you have all the information at hand when it's time for the tax return.

A gift is not the same as a gift

Now to the nitty gritty! To ensure that employee gifts are tax-free for you, there are various points to consider. Because a gift is not always a gift. Rule number 1: Monetary gifts are generally not tax-deductible. The tax-free regulation only applies to gifts in kind, for example cups, gift baskets or, of course, chocolate . ;-) An exception is the assumption of monthly tickets or fuel costs - more on that in a moment. Rule number 2: There is a limit to how much you can allow the employee gift to cost you. We now come to this upper limit.

gifts for motivated employees

50 or 60 euros – what is the maximum limit?

When it comes to tax-free gifts, there are two main limits: 50 and 60 euros. But which amount is correct? In fact, both are correct. However, they apply to two different types of gifts.
  • Gifts for special occasions: If you want to make your employee happy for her birthday , her wedding or her farewell , you should choose a gift with a maximum value of 60 euros. This maximum limit applies if you make individual employee gifts on special occasions. But beware: Christmas gifts do not fall into this category!
  • Gifts without a special occasion: The maximum limit of 50 euros applies to gifts other than birthdays, weddings, etc. 50 Euros? That's right! Since the beginning of 2023, the amount has been increased from 44 euros to 50 euros . Such gifts for employees are, for example, Christmas presents, but also vouchers for the gym or monthly tickets for public transport. A monthly chocolate subscription would also be conceivable. ;) That's right, you can give your employees gifts worth up to 50 euros every month! Incidentally, gifts for special occasions remain unaffected by this – you can also give them as gifts. And so that there are no misunderstandings: Employee gifts without special occasions do not have to be given monthly, but can also be given irregularly or once. For example, how about a littlegift after the summer holidays or an Advent gift ? By the way: tax-free employee gifts can be used as a nice bonus to the regular salary.

tax-free employee gifts

Can it be a bit more expensive?

Of course, you can also give your employees gifts that are more expensive than 50 or 60 euros. In this case, however, the gifts are not tax-free, which means they must be taxed by you and possibly also by your employees. In this case, you could have the option of taxing the gifts at a flat rate in order to relieve the recipient. The same applies here: get tips from tax professionals to be on the safe side.

gifts to employees are deductible

Long story short: tax-free employee gifts are worth it

If you do everything right, you can sweeten your employees' work with small gifts - and at the same time benefit from the tax-free rule. So according to the motto: Happy employees, happy you! Pay particular attention not to give money away, to consider the maximum limits and to document receipts well. If you have any questions, get advice from professionals who can tell you exactly how you can best use the tax-free rule for your company.
Are you looking for a special gift for your employees? How about a chocolate box or avirtual chocolate tasting together? You can find more information on :-)

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