Christmas and New Year gifts to children of employees

Nova godinaThe employer can provide a Christmas and New Year gifts for the children or stepchildren of employees, up to 15 years of age. If the value of the gift is less than the non-taxable amount per child, the giving is non-taxable. If value of the gift is more than the non-taxable amount, or a child is more than 15 years old, taxes and contributions are paid as salaries, over 60%.

The non-taxable amount refers to the calendar year. Those legal entities and entrepreneurs who in the current year did not make benefits on this basis, can have such an expenditure before 31.12. and it will charge the costs of the current year. If payments are made after January the 1st, expenditure is the cost of the next year. The non-taxable amount for the period from 01.02.2018. to 31.01.2019. is 9,592.00 dinars per child.

This gift can be in any type of goods (sweets, wardrobe, …), and it can also be money.

Tax reliefs do not apply to entrepreneurs (founders, shop owners) nor to authorized persons in enterprises that have not established employment. In other words, the relief refers to employees ie, those who have concluded a contract of employment.

If the employer has any concerns about the age of children or about parenting, he should request of employees to provide him with copies of birth certificates for their children, if they have not already done so when exercising the right to health care since these categories of children have the right to health care based on the employment of their parents.

Here you can find serbian version of Decision on New Year’s Gifts.

Autor: AKTIVA sistem


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