Tax-free gifts to employees are gifts that can be given by employers without the recipient having to pay tax on the value.
How much can employees receive as gifts for anniversaries, weddings, birthdays and Christmas presents before it triggers a tax liability?
Basically, all gifts and benefits in kind given to an employee during an employment relationship are considered taxable income. This applies regardless of whether the gifts come from the employer or third parties. However, there are certain exceptions that may be useful to be aware of. One of the most practical exceptions concerns ordinary gifts without any special occasion, such as Christmas gifts. To be exempt from tax, the gift must be given as a general arrangement in the company.
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Rules regarding gifts in employment state that as long as the value of the gift does not exceed NOK 5,000 per employee per year, it is not considered taxable. It is important to note that tax-free gifts cannot be in the form of cash. However, gift cards can be given, as long as they are not redeemed in cash.
Company anniversaries also provide the opportunity to give tax-free gifts on various occasions, such as long service in the company, major anniversaries, birthdays, weddings and similar events.
The Norwegian Tax Administration points out that gifts of small value are not considered taxable income. Examples of such gifts include flowers, confectionery and inexpensive bottles of wine. These gifts are tax-free, even if other tax-free gifts within the applicable limits are given in the same year.
Limited companies, both holding companies and operating companies, may make gifts. These can be given to employees, board members and the chairman of the board. Companies can give up to NOK. 5,000 in gifts tax-free per calendar year per person.
The company does not pay employer's national insurance contributions or holiday pay as long as the gift value does not exceed NOK 5,000. 5.000.
See table further down for tax-free gifts on special occasions, such as weddings and anniversaries.
If the amount exceeds NOK. 5,000 in a calendar year, the employer must pay employer's tax and the recipient must pay tax on the gift value over NOK 5,000.
The tax exemption applies to employees, board members and the chairman of the board. Whether you are also a shareholder is irrelevant, but you are not entitled to a tax-free gift if you are only a shareholder in the company.
If the company is only used to make gifts to itself, the opportunity to make tax-free gifts lapses.
Board members (including the chairman) can receive a tax-free gift from each company in which they hold a board position. This also applies to board members for companies in a group structure.
Up to an annual limit of NOK 5,000, gifts received by an employee are not subject to tax and the donor can deduct this amount from the tax. If the total value of gifts received during a year exceeds this limit, the excess amount is taxable for the recipient. This limit applies to gifts from both employer and other sources combined.
For gifts that exceed NOK 5,000 annually, the company incurs employer's national insurance contributions. For example, if an employee receives gifts worth NOK 4,000 from their employer and NOK 3,000 from others, the NOK 2,000 that exceeds the limit is taxable for the employee. In this case, it is not necessary for the employer to pay employer's national insurance contributions.
No. A company can only give NOK. 5,000 as a gift to one person per year. The fact that you have several roles does not affect this.
No, the recipient receives NOK 5,000 as a gift excluding service charge and VAT. The company must book NOK 5,000 as a gift, and the rest is charged to the company as service charge and VAT.
Yes, in addition to the annual limit of NOK 5,000, you can give on special occasions such as weddings, anniversaries, etc. See the table at the bottom of the page for a full overview of the occasions.
Section 5-15 of the Tax Act on tax-free earned income.
The premium is tax-free for the recipient as long as the amount does not exceed NOK 10,000. 10,000 and the company does not claim a deduction for the cost. This applies to competitions that are open to the general public.
Gifts to employees/board members must be booked on account 5900 - Gift to employees.
Service charge with VAT can be booked as a separate line on account 7798 - Other cost, deductible.
No, you can't. If you run a sole proprietorship, you cannot buy a tax-free gift for yourself from the company. This is because you and the sole proprietorship are legally the same "person" and you are not considered an employee of the company. If you own a limited company, however, you have the option of employing yourself in your own company, and can therefore give yourself a gift.
No, only VAT deduction on the service fee related to the gift shipment.
The gift card can be used in any store, right from your mobile.
The gift card can be used in all online stores as a regular payment card.
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