Context

In principle, all benefits received by an employee in the framework of his professional activities constitute taxable remuneration, whether in cash or in kind.

Certain benefits granted by the employer for social reasons to its employees, are however not taxable for the employee, but on the other hand generally are not tax-deductible for the employer. These benefits are called “social benefits”.

A social benefit is a minor payment in cash or in kind provided by employers to employees with the clear social aim of improving the relationship with their personnel.

Culture and gift cheques are considered as social benefits if certain conditions are met:
- a maximum value of EUR 25 if they are given for St. Nicholas, Christmas or New Year
- a maximum value of EUR 75 at the employee’s retirement or decoration

According to an administrative comment (53/214), the above social benefits although tax-exempt for the beneficiary, remain tax deductible for the employer.

News

In a recent answer to a parliamentary question (27 November 2002), Didier Reynders, The Minister of Finance stated that the above amounts had to be adapted, as there was no indexation rule foreseen. He went further, giving new maximum amounts.

For gift and culture cheques: EUR 35 (EUR 105 on the occasion of the employee’s decoration and retirement)
For pension gift: EUR 35 per working year

Didier Reynders gave a press conference and informed the tax authorities of these new amounts on 2 December 2002, with effect as from Income Year 2002.

Please note that as from a social security point of view and for the time being, the old amounts remain unchanged.

For more information, please see the explaining note from the Ministry of Finance:
French: http://www.hrconsulting.be/headline.html?lk=200212031
Dutch: http://www.hrconsulting.be/headline.html?lk=200212032