Accounting, Payroll, Tax & Legal since 1989

Christmas presents for staff

Christmas is soon upon us and people are busy at making Christmas preparations and purchasing gifts. Remembering the company staff with a minor gift is both cheering and a nice method of showing generosity and gratitude. If you are planning to gift your staff, here are few things about taxation and what you should keep in mind.

Generally speaking, gifts purchased during Christmas are often considered to be minor gifts. In taxation, a minor gift is a item gift that has a maximum value of 100 euros. The gift must also not be chosen by the staff and it must be of equal value for a staff members. In short the gift must be of reasonable value and equal to all employees.

Minor gifts are deductible from company income taxation, but not from company VAT-taxation. This is due to the fact, that in taxation, these types of gifts are considered to be part of companies’ staff expenses.

Another thing worth noting, that cash or other monetary rewards, regardless of the amount, are ALLWAYS considered to be part of the employees taxable income. Gifts that are chosen by the staff members are also considered to be a monetary reward. Gift vouchers given to employees are also included, due to the fact that the employee gets to choose how they spend the voucher.


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