Tax-free gifts

Questions about how tax-free gifts can boost your business? Learn more about Regional Hero benefits, legal regulations, and improvements.

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A corporate landscape can be redesigned by introducing tax-free employer subsidies to the advantage of all parties involved. The granting of such grants, which can be declared as tax-free gifts, opens doors to improve employee motivation and performance. Employers and employees can benefit equally from the tax advantages. Since the awarding of such grants is regulated by law, however, a precise understanding of the legal provisions is required in order to make optimal use of them. This is therefore not only an effective tool for employee retention, but also for optimising corporate finances. These grants also offer an excellent opportunity to strengthen the regional economy and promote sustainability. In this guide, we will dive deeper into these topics and shed light on what it means to implement tax-free gifts in a business context.

1. Introduction to tax-free employer subsidies

Tax-free employer subsidies are a proactive and effective tool for companies to motivate their employees while keeping company costs low. These are additional benefits that go beyond the regular salary and are paid to the employee in addition to this. They offer great benefits for both sides: The workforce receives tax-free financial benefits, and the company can thus save costs, as there is no payroll tax or social security contributions on these subsidies.

Benefits of tax-free employer subsidies

Tax-free employer subsidies can come in various forms, for example as meal vouchers, kindergarten subsidies or even as support for company pension plans. As a result, employers can respond to the individual needs of their employees and further motivate them. At the same time, they serve as an appreciation and recognition of the work done and can help to strengthen team spirit and increase employee satisfaction.

Function of tax-free employer subsidies

Tax-free employer subsidies are a legally enshrined opportunity for companies to support their employees. This means that these additional benefits can be paid out tax-free in certain amounts and under certain conditions. It should be noted, however, that there are different models and limits for the different types of grants. It is therefore worthwhile to examine these carefully and select the right options for your own company and employees.

In the following sections, we will dive deeper and find out more about the different types of tax-free gifts in a corporate context, their legal regulations, and their effects on job satisfaction and the economy.

2. What are tax-free gifts in a business context?


Tax-free gifts are an often underrated but highly effective alternative to traditional salary increases. In a business context, this means benefits in kind that employers give their employees in addition to their salary and which are not subject to income tax.

Types of tax-free gifts

The range of possible tax-free gifts is wide. Vouchers or cash cards are often used. These can be designed for special retailers, for example, or have a freely selectable value. Other popular variants include meal vouchers, company bikes, tools or even continuing education offers.

Who benefits from tax-free gifts?

With tax-free gifts, the company not only gives gifts to employees, but also to itself. This is because tax exemption relieves the company financially. It also increases employee satisfaction and retention, which in turn can have a positive effect on the working environment and productivity.

What is the limit for tax-free gifts?

Despite the variety of possible tax-free gifts, there are limits. The monthly allowance of 50 euros represents a central limit. If the gifts exceed this value, they are no longer tax-free. There are also other rules and guidelines that must be followed in order to take full advantage of the tax benefits of these gifts.

It is important to note that tax-free gifts are not a one-time promotion. Rather, they form a long-term strategy for employee motivation and retention, which should be well planned and well thought out. Conversely, an ill-considered or unsuitable selection of tax-free gifts can have the opposite effect. It is therefore important to be conscious and strategic when selecting and implementing tax-free gifts.

Nachhaltigkeit trifft Mitarbeiterzufriedenheit. Entdecke die Regional Hero Card.

Vereine regionales Engagement mit steuerfreien Arbeitgeberzuschüssen und schaffe einzigartige Mitarbeiter-Benefits.

3. Statutory regulations relating to tax-free gifts

In a business context, tax-free gifts prove to be a valuable tool for increasing employee satisfaction and motivation. But before companies use such gifts, it is important to fully understand the legal regulations that apply.

The benefit in kind as a tax-free gift

Payments in kind are a common form of tax-free gifts. Benefits in kind are goods or services that employees receive from their employer in addition to their salary. If handled correctly, they can be completely free of tax and social security contributions. Two main aspects play a role here: the total value of the benefit in kind and the type of good or service.

Observe the maximum limit

A crucial rule when dealing with tax-free gifts is compliance with the established maximum limit. This is currently 50 euros per employee and month. If the benefits in kind exceed this amount, they become full wages subject to tax and social security contributions. It is therefore important as a company to always keep track of things.

The exception: gifts for special occasions

However, there are also exceptions to this rule. Gifts that employers give their employees on special occasions are tax-free up to a value of 60 euros. Such occasions include birthdays or anniversaries.

Vouchers as a tax-free gift

The use of vouchers as tax-free gifts is becoming increasingly popular. However, it should be noted that these should not be redeemable for cash and can only be redeemed for goods or services. However, the maximum limit of 50 euros also applies here.

It certainly takes some time to get familiar with the subject of tax-free gifts. But increased employee diversity and satisfaction can be an important step for companies towards greater productivity and success. Having a competent partner at your side who advises on legal regulations and offers suitable solutions can be a great help in this regard.

4. Tax-free gifts as an instrument of employee motivation

If you're thinking about new ways to motivate employees, consider tax-free gifts. If you haven't used tax-free gifts to motivate your employees yet, let me introduce you to the world of this highly effective and beneficial tool.

The power of tax-free gifts

Tax-free gifts are not only a way to recognize employees, they also have the potential to increase their motivation. They offer added value compared to traditional forms of compensation and can improve employee satisfaction and engagement. With such gifts, you signal appreciation and recognition of their work to your employees, which generally creates a stronger bond with the company. Remind yourself that motivated employees who feel valued tend to be more productive.

Tax-free gifts and resilience

In times of crisis, such as during the Covid-19 pandemic, tax-free gifts have shown that they can contribute to employee resilience. Such gifts can be seen as a form of support that makes employees happy and at the same time increases their motivation and performance.

Employees who receive such gestures of appreciation tend to deal better with the challenges that professional crises can bring.

Simplicity and adaptability

The benefits of tax-free gifts are priceless, and their value far exceeds their monetary value. They are easy to handle and can be used flexibly, so that they can be adapted to a wide range of situations. Whether for a birthday, a celebration of success, or simply to recognize outstanding performance, tax-free gifts are a simple and effective way to motivate employees.

Tax benefits for companies

It should not be forgotten that tax-free gifts are also a financially viable option for companies. In Germany, these types of gifts are tax and social security free of up to a value of 50 euros per month and per employee, which can mean a significant financial advantage for companies.

Overall, tax-free gifts are an important tool for employee motivation. They show recognition and appreciation, promote employee loyalty and motivation, and offer financial benefits for companies. So think about how you can use them in your efforts to motivate employees.

Nachhaltigkeit trifft Mitarbeiterzufriedenheit. Entdecke die Regional Hero Card.

Vereine regionales Engagement mit steuerfreien Arbeitgeberzuschüssen und schaffe einzigartige Mitarbeiter-Benefits.

5. Optimizing corporate finances through tax-free gifts

Tax-free gifts play a crucial role in optimising corporate finances. As a managing director or HR expert, it should be of particular interest to you how you can build a financially stronger and at the same time attractive company by using such extras.

Benefits in kind as tax-free gifts

Through special tax law regulations, benefits in kind and monetary benefits offer the opportunity to pay employees tax-free or reduced rates. The amount of these tax-free payments is limited to 50 euros per month. If used skillfully, this can effectively reduce your business costs. Instead of a salary increase, which represents a higher tax burden for both you and the employee, gifts in kind can serve as an alternative. A particularly attractive feature: If these regulations are applied carefully, there are no additional costs for social security contributions.

Cost management and employee motivation

Tax-free gifts not only optimize costs, they also act as effective tools for employee motivation. By offering your employees such additional benefits, you create an incentive that goes beyond the mere salary. This appreciation creates a positive identification with the company, which in turn increases the productivity and loyalty of the workforce. Personalization and the choice of the appropriate gift contribute in particular to this, be it a regional benefit card or another type of bonus.

Sustainable financial planning

A well-thought-out use of tax-free gifts helps to sustainably strengthen corporate finances. Every euro that is given in the form of a gift — and not as a salary — saves taxes and social security contributions. It therefore pays off to take this option into account in financial planning and to use it systematically. In this way, spending for employees can be made attractive and optimized at the same time.

Outlook: Opportunities and Challenges

The benefits of tax-free gifts are obvious: cost savings, employee motivation and sustainable financial planning. However, the legal requirements and individual needs of employees should always be observed. With a clever strategy and adequate planning, considerable potential can be exploited to optimize company finances and increase employee satisfaction.

6. Tax-free gifts and sustainability: promoting local economies


The topic of tax-free gifts has numerous advantages. In addition to saving taxes and motivating employees, it can make a significant contribution to strengthening and promoting the local economy.

Sustainable support for the local economy through tax-free gifts

One effective approach to boost the local economy is to offer tax-free employer subsidies in the form of regional benefits cards. These cards can be redeemed at local retailers, restaurants, and other service providers. In this way, sales are channeled directly into the local economy. This promotes demand for local products and services and helps to secure and create jobs in the region.

Short distances, big impact

By issuing regional benefits cards as tax-free gifts, companies support a sustainable economy. Short supply chains not only save resources, they also strengthen relationships within the regional economy. In this way, local producers, craftsmen and service companies receive direct financial support instead of having to compete with globally active corporations.

Every gift counts

Tax-free gifts in the form of regional benefits cards have a double positive effect. They ensure higher employee satisfaction and promote regional economic activity. Each individual gift can directly lead to more purchasing power from local suppliers and thus strengthen the regional economy. In the end, everyone benefits — employees, companies and the entire community.

Overall, tax-free gifts therefore not only promote employee motivation and retention, but also contribute to sustainably supporting the local economy. This win-win situation offers significant added value for everyone involved and makes tax-free gifts an effective tool in corporate management.

Any more questions?

Everything you want to know — simply explained.

What is a cash benefit card?

A benefit card in kind is a tool with which companies can provide their employees with tax-free benefits in kind. The Regional Hero Card is a special benefit card that aims to promote the local economy. The card works like a prepaid credit card and can be used at all acceptance points that accept Mastercard. Employers can conveniently top up the cards with tax-free benefits in kind, which employees can then use in shops and services in their region. The Regional Hero Card provides a convenient way to provide employees with tax-free benefits while supporting and strengthening the local economy. It promotes employee loyalty to the company and contributes to the attractiveness of the workplace. The card can be used both online and offline and is supported by a user-friendly app that helps employees discover local offers and keep an eye on their available amount.

How do companies and employees benefit from a benefits card?

Companies and employees benefit from a benefit card in kind, such as the Regional Hero Card, in various ways. Companies can pass on tax-free benefits in kind to their employees and thus increase employee motivation and retention. By supporting the local economy, they also improve their corporate image and contribute to the sustainable development of the region. Employees benefit from tax-free benefits that increase their disposable income and have the opportunity to support local businesses and services. The Regional Hero Card helps them discover the diversity of their region and promotes awareness of the importance of the local economy. Overall, the card therefore creates added value for everyone involved.

What tax-free benefits in kind can companies offer with a benefits card?

With a benefit card such as the Regional Hero Card, companies can offer their employees various tax-free benefits in kind. In Germany, for example, benefits in kind of up to 600€ per year and employee are tax-free, in addition, 180€ per year and employee can be granted for personal events such as birthdays or anniversaries. The tax-free benefits in kind include meal vouchers, vouchers for local shops, leisure facilities or cultural events. The Regional Hero Card allows companies to easily and conveniently pass on these tax-free benefits to their employees while supporting the local economy.

How can I order and activate the Regional Hero Card?

To order the Regional Hero Card for your company, please use the contact field on our website to make an appointment with us. In an online meeting, we will discuss the requirements and the desired number of cards for your employees. As soon as the cards have been ordered, your employees will receive the physical card by post or the digital card via email. The Regional Hero Card is activated via the corresponding app. Your employees must download the app on their smartphone and log in with their personal details. They then enter the activation code that they received with the card. After successful activation, the card is ready for use and the credit can be used at participating stores and service providers. The app also provides an overview of the current balance and the option to view transactions.

How does the Regional Hero Card contribute to sustainability and strengthening the local economy?

The Regional Hero Card contributes to the sustainability and strengthening of the local economy by allowing employees to spend their tax-free credit with regional businesses and service providers. In this way, the money flows directly into the local economy, which helps to secure jobs, support local companies and strengthen purchasing power in the region. By specifically promoting the local economy, sustainability is improved as transport routes are shorter and local resources are used. This results in a reduction in the ecological footprint. In addition, the Regional Hero Card promotes awareness of the importance of the local economy and the benefits of shopping with regional suppliers. By combining tax-free benefits for employees and supporting regional companies, the Regional Hero Card helps create a sustainable and economically strong community.

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