Do you know the rules on employee benefits 2021?

It's never fun to receive a gift that you love, but then suddenly have to pay tax on it. That's why it's important for employers to be aware of the rules on employee benefits 2021.

Driving under company auspices

If you drive for your employer, you get DKK 3.44 tax-free per kilometre you drive. This applies up to the first 20,000 kilometres. However, it's important to remember to save your mileage receipts for documentation in case the tax authorities want to see your mileage one day.

Do you have coffee and cake in the office? Then keep it below the magic limit

Coffee, cake and fruit schemes are considered a gift from employer to employee. Here it is important not to cross the magic threshold of €6,500. This is also known as the triviality limit.

If your employer is in a gift-giving mood, keep it at 1,200,- in 2021

If your employer wants to reward you with a trip, a new bike or something else on top of your salary, remember that anything over 1,200 will be taxed. This also applies to anniversary, wedding and birthday gifts. Therefore, it might not be such a desirable gift to receive anyway. However, all monetary gifts are taxable regardless of the amount.

Employers may also be in the Christmas spirit and want to reward their employees with a Christmas present. Here is the limit on tax-free Christmas gifts of max. 900,- incl. VAT in 2021.

In total, gifts from employer to employee may not exceed the maximum amount of 1,200 incl. VAT per year in 2021.

If you as an employer would like to send your employees on a training programme, it's tax-free!

Finally, one thing where the taxman doesn't come and take your money because you want to be good to your employees. Here, employers can go all out when it comes to sending employees on training programmes without the employee risking a tax penalty. So your employees can easily continue their education and training without having to worry about tax.

So what do employers and employees need to remember?

  1. Avoid gifts of money, they are taxable from €1
  2. Remember to save your tax-free driving receipts
  3. Christmas gifts may not exceed 900,- incl. VAT in 2021
  4. Other gifts have a max. of 1.200,- in 2021
  5. The triviality limit for coffee, cake and fruit is 6,500 in 2021
  6. Courses and training are tax-free

As a customer of Dansk Løn Service, you can always call us with any questions you may have about employee benefits. A high level of service is always included in our payroll administrationwhere we're up to date on everything, so you don't have to spend time on it.

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