The SAM PRODUCTION practice tip

In only a view weeks is Christmas and the question is: Where you can celebrate and what you have to consider about taxes? Together with our accountancy firm Schneider + Partner (www.schneider-wp.de) we summarized the most important information for you, so the “big party” is not becoming the “big disaster”.

Legal guidelines for the office party:

Company events like Christmas parties or business anniversaries are part of the operational level. This kind of events are supporting the contact between employer and employee and therefore also the working atmosphere. There are a couple of points to follow during planning and organization so that the tax office is accepting those events.

1.) Document your expenses exactly. Sometimes the tax office is requiring a detailed summary about all costs.

2.) Your party can be tax-supported, but only when all employees have the chance to attend the event and the duration of the event isn’t limited.

3.) Not more than two events per year can be tax-supported.

4.) The amount of expenses for each employee shouldn’t top 110.00 € (inclusive sales tax). If the exemption limit tops just only one cent, the entire expenses will changed to wage with income tax and social insurance tax.

5.) Typical expenses are costs for dining and beverages, for the arrival and departure journey and maybe accommodations as well as rent for a hall and engaged artists.

6.) If you invite business partner, you can only deductible 70 % of the taxes.

7.) If relatives of the employees are invited too, you have to count these costs to the particular employee.

8.) Gifts for the employees are only income tax free up to an amount of 40.00 € and have to count to the exemption limit of 110.00 €.

9.) Unusual company meetings or events over the exemption limit of 110.00 € can be charged with a general income tax of 25 %.

 
You have any further questions to this or other topics or you wish a consultation for your event? Feel free to contact us. The team of SAM PRODUCTION is always available for any topics about event marketing and event production.