Christmas gifts for businesses - rules & tips 2024

For many companies, Christmas is a time to show appreciation to both employees and customers through Christmas gifts. However, these gifts can be considered taxable benefits, but there are exceptions. Here is a quick overview of the rules for Christmas gifts in businesses and what is important to consider for both employee and customer Christmas gifts.

Christmas gifts for employees

When a company is giving Christmas gifts to its employees, there are really no special restrictions. A Christmas gift can be anything from home furnishings to a spa treatment. A Christmas gift from companies to employees can also consist of gift cards.

To keep in mind when it comes to giving a Christmas gift to employees are:

1. The Christmas gift cannot be pure money.
2. Expenses for Christmas gifts to employees are deductible.
3. For a Christmas gift to be tax exempt, all employees or a large group of employees must receive a Christmas gift.
4. A person who is the sole employee of a private limited company can receive a Christmas gift tax-free.
5. Private individuals can also give employees tax-free Christmas gifts.

How much a company can give for Christmas

Employees can receive a Christmas gift from a company completely tax-free as long as the value of the gift does not exceed a certain amount. According to the Swedish Tax Agency, a tax-free Christmas gift for companies in 2024 may amount to a maximum of SEK 550.

Employers may of course give a Christmas gift with a value exceeding SEK 550. However, it is important to remember that the employee who receives the gift is obliged to pay tax on the value of the gift.

Tax-free Christmas gifts

There is a general rule that employees are obliged to pay tax on gifts they receive from their employer. However, the rule does not apply to gifts that qualify as either a Christmas, anniversary or commemorative gift. These gifts are completely tax-free for employees up to a certain amount. Christmas gifts from companies can also be given to charity.

Christmas gifts for customers

Unlike a business-to-employee Christmas gift, a Christmas gift to customers is normally not deductible. However, there are some exceptions that allow some Christmas gifts to customers to be considered tax deductible:

1. A Christmas gift to a customer in the form of a business gift is deductible up to SEK 300 excluding VAT.
2. Promotional gifts of a simple nature follow the same rules as business gifts.
3. A Christmas gift in the form of a Christmas dinner for customers can be considered a deductible expense. This is the case if the entertainment costs are directly related to the business.
   

Christmas gift tips for businesses

With Christmas just around the corner, it can be nice to celebrate the holiday in your company. An easy way to celebrate with employees is by giving a Christmas gift. Below are some popular suggestions for Christmas gifts that companies can give to their employees:

• Luxury home furnishings such as bedding sets, candle lanterns and vases.
• Useful technologies such as Bluetooth speakers, headphones and power banks.
• Kitchen items such as knife sets, salt and pepper mill sets and wine glasses.

There are also lots of fun activities that employees and employers can do together to celebrate Christmas and strengthen workplace cohesion. For example, the company can organize different types of quiz competitions, solve a murder mystery together or play Christmas games like Secret Santa.

Book the Christmas gift easily with Mynt

As long as a Christmas gift does not exceed SEK 550, it can be recorded under other staff costs. Non-deductible Christmas gifts to customers are recorded under the account for other non-deductible external costs.

Mynt The company card helps companies to manage Christmas gift expenses more smoothly. The company card is directly linked to the company's accounting system. When the company buys Christmas gifts for its employees with the company card, accounting becomes much easier.

Source

The tax authorities