Corporate gifts in Denmark in 2024
- 2 minute read
- Payroll & HR
Christmas is approaching and many companies are considering how best to show their appreciation to their employees. Let’s review the most important rules for corporate gifts in Denmark in 2024 so you can give gifts with a clear conscience.
Thresholds for tax-exempt corporate gifts in Denmark in 2024
In 2024, as an employer, you can give your employees gifts worth up to DKK 1,300 annually without tax consequences. This amount is called the de minimis limit and includes all gifts given during the year.
Special rules for Christmas presents
A Christmas gift of up to DKK 900 is tax-free as long as it is a gift in kind. A gift in kind means that the gift does not fall under the category of ‘taxable gift cards’ and is not cash.
Even if the total annual gift value exceeds the trivial limit of DKK 1,300, the Christmas gift remains tax-free, provided that it does not exceed DKK 900.
What counts as a corporate gift?
Corporate gifts include a wide range of items and experiences:
Physical gifts such as wine, chocolate or electronics Experiences such as restaurant visits or concert tickets Benefits in kind
Cash gifts are always taxable.
It is important to note that special rules apply to gift certificates. And the tax-free rules only apply if the gift certificate doesn’t exceed the triviality threshold of DKK 1,300.
| Tax-exempt gift certificate | Tax-liable gift certificate |
|---|---|
|
Gift certificates that are only valid with few selected online providers. |
Gift certificates that can be exchanged to cash. |
|
Employer has determined the gift that the certificate is used for in advance for the specific employee. |
The gift certificate is digital, as these can always be exchanged to cash – even if it is subject to a fee. |
|
Gift certificates for a specific restaurant where it can only be used for e.g. 1 of 3 specific menues put together by the meployer. |
Gift certificates with a wide range of use cases, for example for department stores, supermarkets or hardware stores. |
|
|
Gift certificates for, for example, the employer’s product range, which provides a wide range of use cases. |
Employer's obligations
As an employer, you must report cash gifts and taxable gift certificates as A-income.
Gifts in kind that exceed a value of DKK 1,300 must be reported as employee benefits, i.e. B-income without unemployment insurance contributions.
Expenses for gifts from employers to employees can be deducted in the company’s tax accounts.
Employee obligations
If the total value of gifts received from one or more employers in a year exceeds DKK 1,300, the entire value of the gift/both gifts is taxable. This means that if you, as an employee of two different companies, receive two gifts of DKK 700 from one and the other employer, you will have to pay tax on both gifts.
Tips for keeping track of corporate gifts
1. Keep a log of all gifts given to each employee
2. Consider giving a Christmas gift of exactly DKK 900 to take advantage of the special rule
3. Remember to inform employees if the de minimis limit is exceeded
4. Be aware of the reporting obligation for gifts above the de minimis limit, gift certificates, and cash gifts.
Giving company gifts is a great way to show appreciation, and with the right precautions, you can do so without tax worries. Stay within the de minimis limit of DKK 1,300, take advantage of the special rule for Christmas gifts, and remember your obligations as an employer.
By following these guidelines, you can spread joy among your employees while staying on the right side of the tax rules. Enjoy your gifts in 2024!
