The tax aspect of business gifts is an important part of business operations, as proper handling of gifts can lead to cost optimization and the utilization of tax benefits. To avoid unexpected tax liabilities, it is crucial to be aware of the legislation and rules regarding the taxation of business gifts.
When are business gifts tax deductible?
Business gifts that a company gives to business partners, clients, or employees can be tax-deductible under certain conditions.
Tax legislation in Slovenia stipulates that gifts not exceeding the value of 42 EUR per recipient per year are tax-deductible expenses. This limitation means that a company can include the costs of these gifts among tax-deductible expenses, which reduces the tax base for corporate income tax assessment.
In addition, the gifts must be directly related to the company's activities and must serve a business purpose, such as strengthening business relationships or enhancing the company's visibility. This includes promotional gifts that carry the company's logo or other promotional messages that help spread the brand.
Tax aspect of business gifts to employees
When it comes to business gifts to employees, such as gifts for special occasions (New Year, birthday, anniversary), these are tax-deductible if they do not exceed a certain amount.
For employees, business gifts up to the value of 42 EUR can also be considered a tax-deductible expense, but they must be related to business objectives or promoting a good atmosphere among employees.
How to handle gifts that exceed 42 EUR?
If the value of a business gift exceeds 42 EUR, the excess amount is not a tax-deductible expense. In this case, the company must pay tax on the excess and ensure proper documentation of the gifts.
It is important for the company to maintain accurate records of all business gifts, including the recipients and the value of the gift, in order to avoid issues during tax inspections.
Tax aspect of promotional gifts
Promotional gifts that a company gives to the general public (e.g., at fairs, promotional events) are generally tax-deductible if they are intended for advertising the company and increasing brand awareness.
Such gifts must be marked with the company logo, and the value of each gift must be reasonable in relation to the nature of the promotional event.
Eco gifts and tax benefits
"We particularly recommend eco gifts, as they not only follow sustainability trends but can also positively influence the company's image and customer relations in some cases."
If eco gifts include elements that promote sustainability, this can further contribute to your social responsibility, which is important for the long-term reputation of the company.
Key tips for tax optimization of business gifts
To make the most of business gifts and avoid additional tax obligations, we recommend the following:
- Obtain accurate records of business gifts, including recipients, value, and purpose of the gift.
- Ensure that the value of gifts does not exceed the legally defined limits (42 EUR) so that the expense is tax-deductible.
- "Check whether the promotional gifts meet the requirements for tax deductions, especially in the case of larger marketing campaigns."
- Use business gifts that support the company's sustainability and environmental goals, as this can further contribute to your business image.
The correct tax treatment of business gifts is crucial for optimizing company costs and reducing tax risks. At the same time, we must not forget that each gift must also carry the right message and serve long-term business goals.
Discover our offer of business gifts.
"Business gifts can be an excellent investment in long-term business relationships, especially if they are carefully selected and properly handled in accordance with tax legislation." - The Slovenika Team
