Employee Gifts

Most gifts are taxable- but there are some exceptions 

As a general rule, all income is taxable, regardless of the term or form of payment. However, it is possible to provide employees with tax-free gifts on special occasions.

Gifts in connection with Christmas and the New Year, birthdays, etc. are not taxed, if the total value of the gifts does not exceed 1,200 DKK per year. If the value of the gift(s) exceeds 1,200 DKK, the employee will be taxed on the entire value of the gift(s). Please note that in order to be eligible for this tax exemption, the gift must be an object. This means cash or gift cards are not eligible for this exemption.

 

However, the amount limit for Christmas gifts is a maximum of DKK 900.

 

Gifts on special occasions: Gifts from employer to employee in connection with resignation, or in connection with the employer or employee's anniversary (e.g. 25 years anniversary) are included in the taxable income up to a maximum value of 8 000 DKK. However, there are special conditions for this exemption and these must be met for the rules to be applied.

 

If you are in doubt about a gift and would like more personalized advice, our tax experts are always here for you.

 

*SkatteInform does not take any responsibility for any actions taken based on the information provided in this article, before receiving individual tax advice.