Temporary tax exemption for the benefit of gifts to personnel and free parking
To give the opportunity to show extra appreciation to staff in these difficult circumstances, from 1 June there is a temporary tax exemption to give gifts. The purpose of this temporary tax exemption is also to stimulate increased consumption. The benefit of free parking at the workplace has been created because many business owners want to offer their staff free parking to facilitate compliance with the recommendations of the Swedish Public Health Authority, to avoid public transport.
Temporary tax exemption for gifts
A temporary tax exemption for gifts from the employer applies during the period June 1, 2020 to December 31, 2020. This is on gifts up to a value of SEK 1,000 per employee. This applies in addition to the existing opportunities to give tax-free gifts, such as Christmas gifts. The decision came into force on June 1, and applies to gifts made from June 1 to December 31, 2020.
If the gift is worth more than SEK 1,000, the part that exceeds SEK 1,000 is taxed. The employer may deduct the cost of the gifts as a personnel expense.
Money gifts are not tax-free. Other means of payment such as check, money order and gift cards that can be exchanged for money are considered as money. Gift certificates that cannot be exchanged for money, on the other hand, is a tax-free gift.
The gift must be given to all employees or to a larger group of employees.
Temporary tax exemption for the benefit of free parking
New from the Swedish government is a change that entails a temporary tax exemption for the benefit of free parking in connection with the workplace.
The tax exemption is temporary and applies to benefits provided after March 31, 2020 until the end of December 2020.
The background is that many employers want to offer their staff free parking to facilitate staff to follow the recommendations of the Public Health Authority, to avoid public transport. Laws can in some cases be applied retroactively if it is to the bFor affected personnel, the correction will only appear in the declaration next year and they will then get the tax money returned. For the coming months, from June and onwards, Accountor will correct this directly when doing the payroll administration.enefit of the taxpayer.
According to the temporary law change the benefit of free parking at the workplace should not be taxed.
Employees who are taxed according to SINK can also receive the same tax-free benefits as described above. The benefit of free parking as well as the benefit of gifts that are tax-free should in addition be exempt from social charges.
How does Accountor act with regards to our clients: Instead of doing an extra payroll run to rectify this retroactively, we / or you as a customer can go directly to the Swedish Tax Agency's page and correct it. For affected personnel, the correction will only appear in the declaration next year and they will then get the tax money returned. For the coming months, from June and onwards, Accountor will correct this directly when doing the payroll administration.