By Theyo Team
Gifts can be a nice gesture if you want to make your employees, customers or business partners happy! If you do it right, even the tax office will come to you. Because gifts maintain the business friendship and are therefore tax-free under certain conditions. How it works? Don't worry, it's not rocket science. In this article you will learn what tax-free gifts for employees, customers and business partners are, what you need to look out for in order to benefit from the tax advantages, what flat-rate taxation is all about and whether company events can also be tax-free.
Tax-free gifts are deductible gifts for employees, customers and business associates. But what are deductible gifts? This could be vouchers, chocolates, bouquets of flowers or other presents. It is only important that it is a material value and is not handed over in the form of money. By the way: You can find chocolate gift ideas for employees and customers here .
There is an exemption limit of 528 euros per year for employee gifts , but be careful: you may not exceed the amount of 50 euros per month (NEW since 2022!) . If you exceed the limit by just one cent, the gifts must be taxed as income by the employee. In this way, the freedom from social insurance is lost and that for the entire sum. If your gift is less than 50 euros, there are no further social security contributions and it remains a tax-privileged benefit.
But as always, the same applies here: There are exceptions to every rule! If there is a personal occasion such as a birthday, wedding or similar, the exemption limit increases to 60 euros .
Good to know: If an amount is not used up in a month, it may not be carried over to another month.
On the other hand, if you want to make your customers or business partners happy, then you should make sure that the gifts do not exceed a value of 35 euros per person and year . You can deduct the gifts as business expenses. If the gift is more expensive, unfortunately you cannot deduct the entire expense. You then either pay tax on the gift as a company at a flat rate of 30 percent or the recipient pays tax on it at his own income tax rate as wages.
In addition to the flat-rate income tax, the donor must also pay the solidarity surcharge and church tax. Also note that if you pay tax on the gift, it counts as another gift. It therefore makes sense to make sure that your gift is below the 35 euro value limit . In this way, your gift including “tax gift” remains deductible as business expenses.
You still want to give your employees, customers or business partners something more expensive? Then just read on and learn more about the flat-rate taxation for gifts.
Other rules apply to business partners and friends . If your gift exceeds the value of 35 euros including taxes, these can be taxed at a flat rate of 30 percent (plus solidarity surcharge). In the case of flat-rate taxation, the recipients are therefore off the hook. Remember to let the recipient know their gift is already taxed. This applies to all gifts, with the exception of “giveaways” up to 10 euros, which you can give away without registering.
In order to answer this question, one must first clarify what company events are:
These are events with a social character at company level, for example summer festivals, Christmas parties and company outings .
On the occasion of a company event, drinks, food, music, artistic performances, admission tickets, travel and accommodation costs orchocolate tastings ;-) are among the permissible benefits. Gifts that you give away at an event also count towards these expenses. Even if employees who were unable to attend the company party for personal or operational reasons receive their gifts afterwards.
Donations for company events remain tax-free for up to two events per year - with 110 euros per person . If the allowance is exceeded, you can tax the remaining amount at a flat rate of 25 percent.
As always, the same applies this time: We have done our best to compile the latest tax information for you. This will give you a rough overview and an understanding of how it all works. To make sure that your company outing or the gifts remain tax-free, you should definitely speak to your accounting department or your tax advisor. It is often the case that certain amounts are already planned, for example for drinks or fruit in the office. So before you decide to use your budget to the full, consult us again.
Whether farewell, birthday, Christmas or a successful project completion, there is always a reason to make your employees, customers or business partners happy. If you keep an eye on the exemption limits, nothing stands in the way of joy for colleagues and customers. Are you still looking for ideas? How about a chocolate box or a joint virtual team tasting ?
As already mentioned, this depends on the monetary value of the gift in question. If this exceeds 50 (60) euros for an employee or 35 euros for a customer or business partner, the gift must be taxed.
Gifts in private are generally exempt from gift tax. However, if the value of the gift exceeds several tens of thousands of euros, the tax office may levy gift tax on it.
Incidentally, gifts that are given privately and are only used for business purposes can be stored as business assets and written off.
As answered in the previous question: Private gifts, outside of the company, are generally exempt from gift tax.
Gifts to customers are generally tax-free if they do not exceed EUR 35 per year.
Just like with customer gifts, the value limit for gifts for business friends is 35 euros if they are to remain tax-free.
What are tax-free gifts for employees and customers?
Tax-free gifts are deductible gifts for employees, customers and business associates. But what are deductible gifts? This could be vouchers, chocolates, bouquets of flowers or other presents. It is only important that it is a material value and is not handed over in the form of money. By the way: You can find chocolate gift ideas for employees and customers here .What you need to look out for when it comes to business gifts in 2023
A gift is not always a gift! Depending on whether the tax-free gift is intended for employees or customers, you have to take a closer look:
There is an exemption limit of 528 euros per year for employee gifts , but be careful: you may not exceed the amount of 50 euros per month (NEW since 2022!) . If you exceed the limit by just one cent, the gifts must be taxed as income by the employee. In this way, the freedom from social insurance is lost and that for the entire sum. If your gift is less than 50 euros, there are no further social security contributions and it remains a tax-privileged benefit.
But as always, the same applies here: There are exceptions to every rule! If there is a personal occasion such as a birthday, wedding or similar, the exemption limit increases to 60 euros .
Good to know: If an amount is not used up in a month, it may not be carried over to another month.
Gifts for business partners or customers
On the other hand, if you want to make your customers or business partners happy, then you should make sure that the gifts do not exceed a value of 35 euros per person and year . You can deduct the gifts as business expenses. If the gift is more expensive, unfortunately you cannot deduct the entire expense. You then either pay tax on the gift as a company at a flat rate of 30 percent or the recipient pays tax on it at his own income tax rate as wages. In addition to the flat-rate income tax, the donor must also pay the solidarity surcharge and church tax. Also note that if you pay tax on the gift, it counts as another gift. It therefore makes sense to make sure that your gift is below the 35 euro value limit . In this way, your gift including “tax gift” remains deductible as business expenses.
You still want to give your employees, customers or business partners something more expensive? Then just read on and learn more about the flat-rate taxation for gifts.
How does the flat-rate taxation 2023 work for gifts?
Is there a special occasion and you want to give your employees something special? Then you can also give more expensive gifts as part of a company event . The social security obligation still applies here, but the gifts can be flat-rate taxed at 25 percent.Other rules apply to business partners and friends . If your gift exceeds the value of 35 euros including taxes, these can be taxed at a flat rate of 30 percent (plus solidarity surcharge). In the case of flat-rate taxation, the recipients are therefore off the hook. Remember to let the recipient know their gift is already taxed. This applies to all gifts, with the exception of “giveaways” up to 10 euros, which you can give away without registering.
And how do you tax company events?
In order to answer this question, one must first clarify what company events are:These are events with a social character at company level, for example summer festivals, Christmas parties and company outings .
On the occasion of a company event, drinks, food, music, artistic performances, admission tickets, travel and accommodation costs orchocolate tastings ;-) are among the permissible benefits. Gifts that you give away at an event also count towards these expenses. Even if employees who were unable to attend the company party for personal or operational reasons receive their gifts afterwards.
Donations for company events remain tax-free for up to two events per year - with 110 euros per person . If the allowance is exceeded, you can tax the remaining amount at a flat rate of 25 percent.
As always, the same applies this time: We have done our best to compile the latest tax information for you. This will give you a rough overview and an understanding of how it all works. To make sure that your company outing or the gifts remain tax-free, you should definitely speak to your accounting department or your tax advisor. It is often the case that certain amounts are already planned, for example for drinks or fruit in the office. So before you decide to use your budget to the full, consult us again.
The best idea for tax-free gifts
Whether farewell, birthday, Christmas or a successful project completion, there is always a reason to make your employees, customers or business partners happy. If you keep an eye on the exemption limits, nothing stands in the way of joy for colleagues and customers. Are you still looking for ideas? How about a chocolate box or a joint virtual team tasting ?
FAQ
Which gifts are tax-free?
The answer depends on whether the gift is for employees, customers or business partners and how much it costs. The budget for employee gifts is 528 euros per capita per year, but may not exceed 50 euros per month. An exception are special occasions such as birthdays or weddings, then the limit per month is 60 euros. Gifts for customers or business partners are tax-free up to 35 euros.
When do gifts have to be taxed according to 37b?
As already mentioned, this depends on the monetary value of the gift in question. If this exceeds 50 (60) euros for an employee or 35 euros for a customer or business partner, the gift must be taxed.
Can private gifts also be tax-free?
Gifts in private are generally exempt from gift tax. However, if the value of the gift exceeds several tens of thousands of euros, the tax office may levy gift tax on it.Incidentally, gifts that are given privately and are only used for business purposes can be stored as business assets and written off.
