Are you also wondering where the difference lies between gifts and promotional items? Where are the limits? What counts as a token of appreciation? For you as an external bookkeeper, we have prepared posting instructions that finally provide clarity. You can access these via your external bookkeeper login on our website with immediate effect. Should any further questions arise, please feel free to contact your designated contact person at our firm. (As of July 2013)
Frequently asked questions
Frequently asked questions
What qualifies as a gift of appreciation (Aufmerksamkeit) for tax purposes?
Aufmerksamkeiten are non-cash gifts from the employer to employees on personal occasions (e.g. birthday, wedding, birth of a child). They are exempt from income tax and social security contributions up to a threshold of EUR 60 gross (previously EUR 40). If this threshold is exceeded, the entire amount is treated as taxable employment income.
How do gifts and promotional giveaways differ for tax purposes?
Gifts to business associates are only deductible as business expenses if the acquisition costs per recipient and year do not exceed 35 euros net. Promotional giveaways (Streuartikel) are advertising items worth up to 10 euros net per piece; they do not qualify as gifts in the tax sense and are not subject to the recipient documentation requirement.
Up to what value are promotional gifts considered giveaways (Streuartikel)?
Promotional items with a net value of up to 10 euros per unit qualify as giveaways (Streuartikel). They are fully deductible as business expenses and are not subject to the flat-rate taxation under § 37b EStG.
What record-keeping obligations apply to gifts to business associates?
Gifts to business associates must be recorded individually and separately from other business expenses. In addition, the recipient must be documented by name. If this record-keeping obligation is breached, the business expense deduction is lost even if the EUR 35 limit is observed.
When is flat-rate taxation under Section 37b EStG relevant for gifts?
For gifts to business partners exceeding the EUR 10 threshold, the giver may assume the tax at a flat rate of 30%, plus solidarity surcharge and church tax. This keeps the gift tax-free for the recipient. However, the flat-rate tax itself is not deductible as a business expense if the gift exceeds the EUR 35 limit.