February 28 is the last deadline to submit the result of the reopened payroll runs to the responsible tax authorities – taxable gifts to employees can still be taken into account retroactively for the year 2025 up to this date.
But what allowances currently apply and what should be considered? And what about company events? We have summarised the most important regulations for you.
General benefits in kind
Non-cash benefits – such as Christmas gifts – are tax-free and exempt from contributions up to an amount of 186 euros per employee and calendar year . This limit applies on an annual basis and includes all non-cash benefits of a year. If the exemption amount is exceeded, the tax and contribution exemption for the entire amount does not apply; there is no provision for a partial exemption. If this is the case, additional tax can then still be paid in payroll accounting in the 13th or 14th run.
The beneficiary benefits in kind include material goods, gift coins and vouchers, if they cannot be redeemed for cash.
It is also important that it is not an individual reward for individual employees. Rather, the allowance must be granted to all employees for a specific occasion – for example, at Christmas.
Gifts in kind for special occasions
Gifts in kind on the occasion of a service or company anniversary are also tax-free and contribution-free up to 186 euros per employee and year. It should be noted that an anniversary is only eligible for benefits from ten years of service.
The following anniversaries are beneficiaries:
- Service anniversary (employee): 10, 20, 25, 30, 35, 40, 45 or 50 years
- Company Anniversary (Enterprise): 10, 20, 25, 30, 40, 50, 60, 70, 75, 80, 90, 100 years, etc.
If several anniversaries coincide in a year, the allowance is not doubled – the annual limit of 186 euros remains.
On the other hand, monetary benefits, such as anniversary bonuses, are not exempt from tax and contributions. These are considered other emoluments and are taxed and contributed accordingly within the framework of the annual sixth .
Corporate events
Company events such as Christmas parties, company outings or cultural events are to be considered separately . Up to 365 euros per employee per year are exempt from payroll taxes and social security contributions.
The allowance remains in place up to this amount even if the actual costs per person exceed 365 euros. However, the prerequisite is that participation in the event is open to all employees.
Do you need support or have questions about it? Our payroll team will be happy to advise you!
