Is it possible for gift vouchers for employees not to be subject to PIT?
What problem has the authority resolved?
In an individual tax ruling of 23 September 2021, no. 0112-KDIL2-1.4011.647.2021.1.MKA, the Director of the National Tax Information addressed the issue of taxation with PIT in respect of gift vouchers given to employees.
The individual tax ruling was issued on application by the company which was planning to give gift vouchers to its employees. The vouchers were to be given in connection with another shop being opened by an affiliated entity being at the same time the main client of the company. The vouchers purchased by the company (with the value not exceeding some agreed amount), may be redeemed solely in the shops run by the client. The company emphasized in its application for the issuance of the individual tax ruling that the vouchers would be given irrespective of the results of the employees at work, annual appraisal, or absenteeism rates. Additionally, the vouchers were to be given without any contractual consideration being linked thereto on the employee’s part. The fact of giving the vouchers to employees was to result only from the good will of the company and not from its obligation.
In the issued tax ruling, the tax authority confirmed that the value of gift vouchers not being an additional pay/remuneration for the employee for the work performed does not constitute gratuitous employment benefit, but it is subject to the inheritance and gift tax. Consequently, the company has no obligations of PIT remitter, and the obligation to settle the inheritance and gift tax rests with the employee. At the same time, due to the tax-free amount, in practice, it may turn out that the obligation to pay the inheritance and gift tax will not arise.
Occasional gifts versus employee’s revenue
In recent individual tax rulings, the tax authorities confirm that gifts not being an additional pay/remuneration for the work performed, but being a unilateral consideration by the employer, should not be treated as revenue from the employment relationship (compare with e.g., individual tax ruling of 2 March 2021, no. 0115-KDIT2.4011.868.2020.1.MD; individual tax ruling of 30 January 2019, no. 0113-KDIPT2-3.4011.598.2018.1.PR; individual tax ruling of 28 December 2018, no. 0115-KDIT2-2.4011.412.2018.4.BK). Examples include gifts relating to the events linked to the employee’s life situation (e.g., marriage, birth of a child).
What’s next?
It is worth analyzing whether it is possible to benefit from the aforementioned favorable approach of the tax authorities when granting gift vouchers to employees, as it may turn out that a gift for an employee will not be taxed at all.
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