Working world

Employee gifts: How to make the most of tax allowances - a guide

Say goodbye to uncertainty around the tax aspects of employee gifts. In this blog post, learn how to effectively use tax limits for various occasions and give your employees real joy in the process. Includes a handy calculator for individual tax limits!

Konrad Schäfers
Co-Founder & CEO
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Employee satisfaction is a key to success, and gifts can play a powerful role in that. In fact, studies show that 76% of employees who quit their jobs do so because of a lack of appreciation. But how do you navigate the tax and ethical rules when it comes to employee gifts? In this blog post, we'll get to the bottom of it.

Personal and non-personal occasions

First, it is important to understand that the legislator distinguishes between personal and non-personal occasions.

Personal occasions (private environment):

  • Birthday
  • Engagement
  • Wedding (as well as gold, silver wedding)
  • Sick leave or return from sick leave
  • Birth of a child
  • Baptism/enrollment/communion/confirmation
  • Return from parental leave

Personal occasions (professional environment):

  • Pension / Retirement
  • Service anniversary
  • Adoption
  • Onboarding
  • Promotion

No personal occasions:

  • Company anniversary
  • Special services
  • Simple thank you
  • Company celebration
  • National holiday
  • Christmas/Easter

For personal occasions, the tax-free limit is €60 per employee including shipping costs, while for non-personal occasions it is €50 per employee per month.

What may be given as a gift?

Not everything that glitters is gold - especially not for the tax office. In principle, only tangible assets may be given as gifts. These can be classics like pens and wine bottles, but why not get more creative? More unusual gifts such as personalized gift boxes can strengthen employee loyalty even further.

Calculate your tax limit yourself!

Not sure how much you can give away without risking tax disadvantages? No problem! Use our practical calculator, which we will soon include here as a typeform, to determine your personal tax limit.

Christmas gifts and tax benefits

Especially at Christmas, you as an employer can even give away up to €160 per employee tax-free if you combine the monthly allowance of €50 with the annual company event allowance of €110. This is good news for everyone who wants to use the feast of love to offer their teams something special.

Conclusion: A win-win for all

Employee gifts are much more than just a token of appreciation. They are an investment in your team's satisfaction and productivity, and they can even be tax-deductible in the process. So it's a win-win situation for both employer and employee.


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