Tips for Germany Business Gift Giving

In business operations, based on the needs of market expansion and business development, most German companies will present gifts or entertain business partners on certain festivals.

In the construction of corporate culture, in order to better increase the internal cohesion of employees and their sense of identity with the company, and promote the company's team building and corporate culture accumulation, most German companies will prepare gifts for employees on special festivals or personal special days of employees.

At the same time it will also organize internal team building among employees during special work stages.

In the following, we will give tips about the matters needing attention in the company's gift giving mainly from two different levels of business partners and company employees.

Gift giving considerations for business partners：

Although gifts and business entertainment expenses for business partners can be deducted as the company's operating expenses in taxation, German law has strict restrictions on this, and companies should pay special attention to the following points:

1.The cost of gifts given by the company to business partners can be deducted as business operating expenses up to a limit of 35 euros per person per year.

 2.In order to achieve the best purpose of gift giving, so that the donee does not have to worry about taxation matters, the company should bear the tax paid by the donee at a flat tax rate (30%) when presenting gifts to business partners, and inform the donee himself applicable taxes have been borne.

3.Since the tax borne by the business partner (ie the recipient) cannot be deducted as operating expenses, if the company wishes to legally deduct all the gift expenses, it needs to appropriately reduce the value of the gift, so that it does not exceed 24 euros per person per year better.

In order to benefit from the operating expense deduction, the gift must be credited to the correct account in the correct amount (gift giving needs to be accounted for separately from other operating expense accounts) and be sure the relevant details are filled out accurately.

Precautions for the company to give gifts to employees：

1.Generally speaking, the company's gifts to employees can be fully deducted as company operating expenses for tax deduction, but the gifts will be used as additional benefits for employees and will bring employees income tax and social security payment obligations.

There are exceptions in special circumstances, such as employee birthdays or weddings, companies can give employees tax-free gifts of up to 60 euros, and employees do not have to bear the obligation to pay income tax and social security.

2.Additional in-kind benefits (such as fuel cards or vouchers) received by employees other than wages must also be strictly controlled, and the tax-free amount for each employee is 50 euros per month.

3.In any case, if the amount of the gift exceeds the tax-free limit, the employee will have additional income tax and social security payment obligations. Of course, the company can also uniformly pay income tax and social security for the employee on the excess amount.

How to choose the right commercial gift box

Reciprocating courtesy can not only effectively enhance the relationship between businessmen, but also enhance their private friendship.

Therefore, the emergence of company business gift box customization has become a current craze and has become a link between many businessmen. So, what is the significance of company business gift box customization?

1.The company business gift box has practical value

The business gift boxes selected by the company are generally representative items with a strong corporate image.

The items should not only meet people's daily use value, but also have a very important cultural heritage.

This is mainly because when companies present commercial gift boxes to customers, they can not only leave a good impression on customers, but also add corporate logos on them through gift box customization, which also promotes their own brands invisibly.

2. Lay the foundation for the human relationship between enterprises

When enterprises choose business gift boxes, they need to choose items suitable for their corporate image, which can lay the foundation for interpersonal relationships to a certain extent and establish a good corporate relationship with the outside world.

Therefore, the quality and grade of enterprise business gift boxes is a link that enterprises cannot ignore when purchasing.

3.A the symbol of the company

This kind of gift box is usually given by the organizer as a gift and souvenir to the participating groups, and it is mainly used for business salon activities and formal conference activities.

When choosing a gift box company for customization, the price is generally much higher than ordinary promotional products. After all, a successful corporate gift box can represent the charm of corporate image.

4.Company business gift boxes are generally high-end

The company's business gift boxes are generally aimed at middle and high-end people. If these people only distribute daily household items such as shampoo and shopping bags, it will not only reduce the company's value, but also make customers doubt the comprehensive strength of the business. Therefore, the general business gift box All are high-end custom gift boxes.

Through the above introduction, everyone can understand the real meaning and function of the company's business gift box, and I hope it will be helpful to friends.

Jiawei World provides enterprises with a one-stop supply chain service provider for employee welfare product packaging, corporate office and marketing supplies, customized packaging gift boxes, gift bags and other mid-to-high-end products.