Corporate gifting is a fantastic way to show appreciation to employees, clients, and stakeholders, but it’s essential to get it right from both a tax and professional perspective. Here’s what you need to know:
The Do’s:
- Take Advantage of Tax-Free Vouchers: Use the Small Benefit Exemption to provide vouchers of up to €1,000 tax-free per employee in 2024 (increasing to €1,500 in 2025).
- Promote Your Brand: Branded items and promotional goods are tax-deductible if used for business purposes.
- Add a Personal Touch: Include a handwritten note or personalized message.
- Keep Detailed Records: Maintain invoices and documentation to ensure compliance.
- Choose Thoughtful and High-Quality Gifts: Reflect your company’s values and professionalism.
The Don’ts:
- Avoid Cash Gifts: Always taxable and not exempt from Benefit in Kind (BIK).
- Don’t Exceed Exemption Limits Without Planning: Any excess over €1,000 for 2024 is subject to tax and employer PRSI.
- Stay Clear of Offensive Gifts: Avoid politically charged or culturally insensitive items.
- Don’t Ignore VAT Rules: Gifts over €20 (excluding VAT) are taxable unless used for advertising purposes.
- Don’t Overlook Director Rules: Ensure directors receiving gifts meet the eligibility criteria under the Small Benefit Exemption.
Need Help?
Navigating corporate gifting rules can be complex, but it doesn’t have to be. For personalised advice on tax-efficient gifting strategies, reach out to Angela at info@agassociates.ie. Ensure your gifts leave the right impression while staying compliant this festive season! Learn more here.
