When an employer gives employees branded gifts

December 5, 2022

Employers often give their employees various kinds of gifts. Some of them are designed to create a positive image of the employer among employees and often bear the logo of the employer. The question then arises: when an employer gives employees branded gifts, does it create taxable income for the employee and cause the employer to fulfill his obligations as a payer or not?

Nieodpłatne świadczenie: kryteria

Does the case, when an employer gives employees branded gifts, is a gratuitous benefit? Based on the latest positions of the tax authorities and administrative courts, it can be assumed that a gratuitous benefit under the Personal Income Tax Act may be such benefit that:

• was made with the consent of the employee and in his interest (and not in the interest of the employer)
• and conferred a benefit on the employee in terms of increasing his assets or avoiding an expense that he or she would have had to incur.
• and the employee’s benefit is to be measurable and assigned to an individual employee.

Crucial in identifying the principles to be followed when verifying whether, in a given case, there was an income from a gratuitous benefit, is the judgment of the Constitutional Tribunal of July 8, 2014 (reference number K 7/13).

Do employers benefit from giving branded gift to employees?

Referring the above to the situation in which the employer gives employees gifts marked with the company’s logo as part of creating or promoting its positive image, it should be stated that there is no financial gain on the part of the employees. In this case, there is no benefit for the employee, even in the form of saving expenses. It is impossible to assume that if the employees did not receive a gift from the employer, they would allocate their own funds for their purchase. In addition, the employer, by donating gifts bearing the logo, does so primarily as part of “employee marketing”, wanting to create positive feelings among his employees. The main purpose of giving these gifts is therefore the interest of the employer, not the employees.

Consequently, if the employee does not generate tax revenue, the employer is not obliged to calculate and collect advance income tax. A similar position was also presented in one of the recently published individual interpretations of tax law – interpretation of November 10, 2022. ref. 0113-KDIPT2-3.4011.714.2022.2.YY.

Tags nieodpłatne świadczenia, prezenty dla pracowników, przychód podlegający opodatkowaniu