Celebrating Christmas is not only limited to our families at home. You can share the same joy with everyone at workplaces as well. Giving Christmas gifts for employees can be a way to celebrate together.
Gifts for employees are about making your team feel welcomed, supported, and appreciated — just like they’re part of the family.
Many companies in Serbia have a rule to gift the children of their employees. Here we are giving you tips on what to look for if you are gifting children of your employees in Serbia.
The possibility to provide gifts to children of employees is actually prescribed in the Labor Law of Serbia. Gifts may include toys, candy, or other proper gifts. Instead of packets, employers can also give vouchers or money.Please note that donating is not mandatory. But as a good habit of work its present in most of the companies.
According to the law on personal income tax, no income tax is payable on the employee’s income based on gifts given to employees’ children. Under the following conditions, Christmas gifts or New Years gifts:
Firstly for a child up to 15 years old
Secondly that the value of the gift per child is maximum in the value of the tax-free amount
But wich tax-free amount?
Every year this amount is different. In the period from 1.2.2023. to 31.1.2024. gift to employees’ children, aged up to 15, on the occasion of New Year and Christmas is 12,544 dinars. This amount is applied equally regardless of the form in which the gift is provided – in kind or in money.
What if the gift exceeds the tax-free amount?
Gifts with a value above this tax-free amount are subject to tax and contributions. As in earnings. More precisely, tax is paid on the difference over the non-taxable amount.
What if the employer gives a gift to a child over 15 years old?
The tax-free amount would not apply to them. With that, taxes and contributions on the employee’s earnings would have to be calculated on the entire value of the gift.
Benefits of gifts
The holiday season is a perfect time to show to your employees how much you appreciate them. Therefore, the holidays are an ideal opportunity to show people how much they are cared about. A smart holiday gifting strategy can make this moment even more memorable.
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