Tax-free Christmas vouchers

Due to the ongoing Covid 19 pandemic and the corresponding protective measures, many company Christmas parties will have to be cancelled. As a compensation employers may give their employees Christmas vouchers tax-free, as they did last year. This was decided by the Finance Committee a few days ago, but it remains to be seen whether the law will be passed.

The tax-free allowance of EUR 365 for participation in company events (e.g. Christmas party) can be issued as tax-free vouchers. The prerequisite for the tax exemption is that

  1. the tax-exempt benefit from participation in company events in the calendar year 2021 could not be fully utilised or not at all, and
  2. the vouchers worth up to EUR 365 per employee:in
  3. are issued in the period from 1.11.2021 to 31.1.2022.


The granting of these vouchers is also free of ancillary wage costs and social security contributions.

According to the explanations of the legislator, this regulation is intended to promote consumption in Austria and strengthen the earnings situation of domestic companies, which is why both employers should focus on regional companies when purchasing the vouchers and employees when redeeming the vouchers. We will be happy to advise you on the appropriate implementation.


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