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Business gifts

SB
2023-04-28

Question

Hello

Why are promotional gifts only 50% tax deductible?

Surely they are 100% for the business/customers?

The government imposes fixed restrictions on this, because they always see it as something private.

So there is a 50% limit for personal income tax, unless the gifts are more expensive than around 100 euros (I'm not sure of the exact amount anymore). Then you can claim 100% in your accounts, but the other party has to declare it as if it were wages and pay tax on it. So it's not worth the effort, the message is to keep the amount small enough!?!Be glad... I got that explanation from an inspector a few years ago... after my accountant had simply entered everything at 100% (with all the consequences you can imagine!!)

To add: this applies to external business relations (customers, suppliers, external people). Different rules apply to employees. We are all sole proprietors here, so I suspect few people have staff. But for larger companies, there are other (better) rules ;-)

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