Christmas baskets are usually a common tradition in some companies. Large surfaces and supermarkets prepare these boxes with assortments of drinks and food for many companies, and their price is generally between 20 and 40 euros, although some firms such as Inditex, Amancio Ortega’s company, offer workers a basket very special full of food products that is valued at more than 200 euros. In fact, a young woman revealed through her TikTok account everything that this package appeared and her video has gone viral on the social network.
It is important to remember that this Christmas gift is not an obligation for the company. Therefore, the fact of being employed by someone else does not mean that every Christmas they will offer you this type of packages, however, a Supreme Court ruling in 2016 indicated that Christmas baskets are an acquired right of workers, provided that the company has given this gift before over the years.
If you are one of the lucky ones who have taken home a box of wines and assorted sweets this year, there is another key point that you should take into account. As Guillem Vallcaneras Montero, Tax Adviser at the AGM Abogados law firm, points out, these Christmas baskets can be seen as remuneration in kind and, therefore, must be included in personal income tax.
How to include the Christmas basket in the income tax
“The delivery of Christmas baskets constitutes remuneration in kind in favor of the workers. In other words, the company must consider the value of the basket delivered as greater work performance and, therefore, make the income on account of the worker’s personal income tax “recalls the tax adviser.
In this way, it must be considered in the worker’s payroll as a performance more subject to personal income tax. “The employer will also make the payment on account to enter the Tax Agency, deciding if he deducts it from the worker’s net salary or pays it in addition to his own account,” says Vallcaneras. In the latter case, it is important to remember that if the employer does not discount the income on account from the worker, he must also allocate said income on account as taxable income.
Deduct the Christmas dinner bill
This is not the only point to take into account during these dates, the classic Christmas lunches and dinners also have an added aspect that all businessmen must take into account. “The invoice for Christmas dinner paid by the company is considered a deductible expense for the purposes of Corporate Tax, since it is an expense in accordance with usage and customs,” recalls the specialist.
However, in this case, the right to deduct the amount of VAT paid is restricted as it deals with goods and services intended for attention to clients, employees or third parties. Therefore, it may be possible to deduct the expense in Corporate Tax, but not deduct the tax paid for the purposes of Value Added Tax.