Below you have an overview of the new rules on tax-free gift cards for employees.
The Danish Parliament in Denmark made it possible for both public and private employers to give tax-free gift cards to their employees. This way they can appreciate their efforts, or simply to support restaurants, cultural life, etc.
Who can receive a tax-free gift card?
Tax-free gift cards can only be given to people who are employees. The rules do not apply to consultants, fee recipients, trainees, former employees, board members and others.
And how much must the companies give?
The gift card may not exceed DKK 1,200. Several gift cards may be given, as long as the total amount does not exceed DKK 1,200.
And for what purpose?
The rules only apply to gift cards that can be used to pay for one or more of the following specific services:
Purchase of food and drink at restaurants, cafes, burger bars and pizzerias. It is a requirement that the restaurant’s primary revenue comes from seated guests.
Purchase of accommodation in hotels, inns, holiday centers, campsites as well as holiday homes and travel agencies.
Purchase of experiences for amusement parks, theaters, concert venues, music festivals, cinemas, museums, circuses, zoo, and sporting events of all kinds, including football and handball matches.
It is not possible to give gift cards to a trade union or center association for use among all its members.
Only electronic and physical gift cards
The gift card must be an electronic or physical voucher. It is not possible to give an employee DKK 1,200 in cash, even if the employee returns with bills from a restaurant etc.
Time horizon – 2021
The scheme only applies to gift cards given to employees in the calendar year 2021. It is not a requirement that the gift cards must be used before the end of the year.
No reporting obligation
Employers do not have to report to the Danish Tax Agency about any given gift cards.
State Authorized Public Accountant, Partner
+45 5766 2470