In 2021, an extra non-taxable gift can be given to employees to a maximum sum of SEK 2,000 per employee including VAT. The value of a Christmas gift has been increased to a maximum of SEK 500 including VAT. The non-taxable gift for employees can be divided into two separate gifts – a summer and a Christmas gift.
The Swedish Riksdag has approved the Government bill to allow employers to give their employees non-taxable gifts to a higher-than-usual amount for the period 1 January until 31 December 2021. In line with the parliamentary approval, the Vice-Chancellor of Umeå University has allowed the maximum sum for non-taxable gifts to be implemented at the university as well.
The new additional amount can either be used for one Christmas gift to a maximum sum of SEK 2,500 including VAT, or, beside a Christmas gift, add a summer gift to a maximum sum of SEK 2,000 including VAT.
What to consider when using the additional amount for gifts
- The Christmas gift allowance has increased from SEK 450 to SEK 500 including VAT.
- In the total amount of SEK 2,500, the sum of SEK 500 has been reserved for a Christmas gift. Hence, you cannot give a summer gift to the value of SEK 2,500 and choose not to give a Christmas gift. The sum that can be distributed between the summer gift and the Christmas gift is SEK 2,000.
- The employer must give this gift to all employees or to a large group of employees in order for the tax exemption to apply – that means to avoid that the employee needs to declare and pay tax on benefits.
- The gift may not be given as cash but can be given in the form of a product or gift voucher that cannot be exchanged for cash.
- A gift cannot be replaced with a charitable contribution as this is regarded as a donation – which is not allowed.
Read the approved bill by the Swedish Riksdag: Extra ändringsbudget för 2021 – Förlängda ersättningar på sjukförsäkringsområdet, stöd till företag, kultur och idrott samt andra åtgärder med anledning av coronaviruset