To encourage staff during this difficult time, it is possible to give a more generous Christmas gift this year, tax-free!

The tax-free amount that can be used for the purchase of Christmas gifts is SEK 450 per person. From June 1, 2020, and for the rest of the year, a new rule was introduced that entails a tax-free gift of SEK 1,000 including VAT from employers to employees. The purpose of the rule was to give companies the opportunity to provide extra encouragement to staff during the Corona crisis. If that gift has not already been given, it can be combined with the Christmas gift, which means that it will be possible to buy a Christmas gift for the staff to a value of SEK 1,450 per employee, i.e. more than three times as high an amount as normal.

Remember that it is SEK 1,450 including VAT per employee. If the gift exceeds the amount, the entire amount is recorded as a taxable benefit.

Source: Wolters Kluwer