Christmas gifts for employees 2025: how to avoid tax surprises

Christmas is approaching and many companies are starting to think about Christmas gifts for their employees. A good gift is a great way to say thank you for their hard work, but it can quickly become an expensive pleasure if the rules for taxation are not in place. Here's an overview of how to give tax-free Christmas gifts in 2025.

The most important rules for 2025

In 2025, the same basic rates apply as in previous years, but with a few adjustments.

The triviality limit for employee benefits is DKK 1,400 per year
This means that employees can receive gifts and minor benefits of up to DKK 1,400 in total without taxation.

Special rule for Christmas gifts
You can give a Christmas gift as a gift in kind worth up to DKK 1,000 tax-free.
This also applies even if the employee has received other gifts worth up to DKK 1,400 during the year.

This means, for example, that an employee who received gifts worth DKK 800 earlier in the year can still receive a Christmas gift worth DKK 1,000 without having to pay tax.
Only if the Christmas gift exceeds DKK 1,000, or if the other gifts alone exceed DKK 1,400, the gifts become taxable.

Gift cards and cash are always taxed
If you want to give a gift card, it must be for a specific place, such as a restaurant or shop, and it must not be exchangeable for cash.

Deduction for the company
The cost of Christmas gifts can generally be deducted as an operating expense, as long as the gift is given as part of employee care.

VAT treatment of gifts
Companies cannot deduct VAT on the purchase of gifts for employees - neither for Christmas gifts nor other occasional gifts.

Advice for this year's Christmas gift

Stay within the limits
Set a maximum budget per employee, e.g. 800 to 1,000 DKK, so you're on safe ground.

Give a physical gift instead of a gift card
A gift basket, a design object, a book or an experience with a specific use is much safer for tax purposes than an open gift card.

Think about the signal value
A Christmas gift is also part of the company brand. A sustainable, locally produced or personally chosen gift can say more than the price alone.

Document the expense
Make sure to book the gifts correctly so that the company retains the right to deduct.

Remember the other employee benefits

In addition to Christmas gifts, in 2025 employees can receive work-related benefits of up to DKK 7,300 per year. This includes company phone, internet or continuing education. It may be worth taking this into account when rounding off the year.

Get it right from the start

A Christmas gift should bring joy, not extra administration. Keep track of the limits, choose physical gifts over gift cards and account for expenses correctly. Then Christmas will be both enjoyable and hassle-free - also for the accounts.

Do you need advice on the taxation of employee benefits or accounting for Christmas gifts?

Our advisors are happy to help you review your practice so that you stand strong in front of both your employees and the Tax Agency.

Call us on 39 29 08 00
Write to buusjensen@buusjensen.dk