The main rule is that all gifts an employee receives from their employer are taxable, but there are exceptions.
To minimize the risk of mismanagement regarding gifts to employees, it is important to have good processes and policy documents that clearly state what applies within the business. Our specialists provide answers to questions about the regulations and can train employees, managers, and officials at your company, as well as develop proposals for policy documents.
Deductible gifts and tax free gifts for the employees:
- Christmas gift – max 550 SEK including VAT.
- Anniversary gift – when the company celebrates 25, 50, 75, and 100 years, max 1650 SEK including VAT.
- Memorial gift – can be given when the employee turns 50 or 60 years old, celebrates 20 years employment within the company, or upon termination of employment. A maximum of 2 memorial gifts can be given during an employment, and the employee must have been employed for at least 6 years. Additionally, one of the two memorial gifts must be given when the employee leaves the company. The gift can cost up to 15,000 SEK including VAT.
The above amounts for Christmas gifts, anniversary gifts, and memorial gifts are threshold amounts. This means that if they are exceeded, the entire amount must be taxed as a benefit.
Gifts of low value
In addition to Christmas gifts, anniversary gifts and memorial gifts, a simple gift of lesser value can be given as a staff welfare benefit. For example, when an employee has a birthday or gets married for example a simple bouquet of flowers. A requirement is that this gift is given to all employees on such occasion.
