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The time for giving

December 2019.

Christmas is all around us, and if you fortunately have a job and expect a Christmas gift from your employer, you should know the rules for receiving Christmas gifts in Denmark. This rule is also important for employers in the time for giving.

Basically, as an employee, you can receive a Christmas gift up to DKK 800 without paying tax. The employer can deduct the cost as a staff expense. Many people have a family-run business that employs the spouse, children, in-law children or even grandchildren like at Haford Hardware in Rhayader, Wales. Therefore, the condition for a present to be registered as a staff expense is that every employee gets the same present on the same occasion.

Below is a list of giving gifts and the taxation consequences.

Gift items max. DKK 800
Goods from the company's stocks, purchased price max. DKK 800
Gift card - any amount in cash
Christmas party
Bonus - any amount and type
Using the company's holiday home
Using the company's yacht (some do)

Source: Emoji from Shutterstock

Christmas is a merry time of the year. I remember my days at Magasin du Nord at Kongens Nytorv when the boss called to inform us that we could take anything we wanted in the shop for a maximum amount of DKK 1.400 (rule number 2 applies). We couldn't think of anything other than Christmas presents for the rest of the day. Among the Christmas gifts from my employers, I received wine, chocolate, candies, mustard, cinema tickets, and a lot of tableware from Villeroy & Boch.

Merry Christmas, everybody!

The purpose of this blog is to provide a reliable source of business, tax, and accounting information. English is the chosen language to ensure coverage for Danish and non-Danish readers.

JACOBSEN ACCOUNTING ApS

Get the most out of your tax payments

The time for giving