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Flowers and other gifts for partners and employees may not always be subject to tax

It is important to bear in mind that keeping your own wallet separate from that of the company is the sensible thing to do, even if the company is of the one-man variety. If you would like to give flowers or any other gifts to your partners and use company money to pay for them, you must not forget that cut flowers given as gifts to clients or partners are business expenses (i.e. non-taxable expenses). The reason being that they are of no monetary benefit to the recipient. However, if you gift a pot plant that has monetary value for the recipient, then this is considered a gift. All other presents that have monetary value are also taxed as gifts – for example, boxes of chocolates, bottles of wine and gift hampers. In certain cases, they can of course be regarded as non-taxable advertising gifts.

Goods or services provides for advertising purposes whose value without VAT is up to 10 euros are not subject to income tax.

If an employer wants to give all of the company’s female employees flowers on International Women’s Day, then giving them cut flowers is not a fringe benefit. They do not give the employees any benefits that can be assessed in money. The same principle applies here – if anything whose value can be measured in money is gifted in addition to cut flowers, the obligation to pay tax on fringe benefits will arise. Giving pot plants as gifts is also regarded as a fringe benefit.


01.06.16


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