Are you an entrepreneur or HR professional and do you want to know about the tax rules regarding Christmas packages and business gifts? Then you have come to the right place. The work costs scheme (WKR) offers companies the opportunity to give Christmas packages to employees tax-free - as long as you stay within certain limits.
What is the WKR?
The WKR is a scheme of the Tax Authorities that allows you as an employer to give allowances, gifts and other extras without having to pay payroll tax on them. You may spend a certain percentage of the total taxable salary (the free space ) on tax-free allowances and benefits each year. In 2025, this free space will be:
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1.92% of the first €400,000 of the payroll
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1.18% on the amount above €400,000
Does your Christmas package fall within that free space? Then you don't have to pay tax on it.
When is a Christmas package taxable?
If your gifts exceed the free space, you will pay a final levy of 80% on the amount above that. That is why it is important to properly register all your benefits, such as Christmas packages and other gifts, within the WKR.
Please note: a Christmas package is usually seen as a provision in kind , and therefore does not fall under the targeted exemptions (such as travel expenses or occupational health and safety provisions). The Christmas package is therefore usually charged to the free space .
What applies to promotional gifts?
For business gifts to business partners, a threshold amount of €227 per person per year applies. If you are below that amount, you can deduct the VAT. If you give more than €227 to the same relationship, you may not deduct the VAT on the entire amount.
Tip: choose consciously, show appreciation
Christmas packages are more than an expense: it is a powerful moment to show appreciation. With a handmade and locally composed Christmas package from Vroeg, you not only give something beautiful, but you also keep control of your fiscal space.
Curious about the possibilities? View our Christmas packages with fresh, artisanal products and be inspired.
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