A chocolate Santa Claus for employees, a bottle of wine for customers: gifts are in good form for companies during the Christmas season. But what if the fine wine is worth the price of a small car? Is that a bribe? We explain what you should pay attention to as an entrepreneur when dealing with Christmas gifts.
Our recommendation
Since there is no legal limit for the value of customer gifts, it must be considered on a case-by-case basis whether a donation is unproblematic or not. Because even if the in-house compliance guidelines set a maximum value for gifts, exceptions may apply. We are happy to help you through the compliance jungle and answer your individual questions.
Customer gifts: It must be socially adequate
Anyone who tries to gain an advantage over other competitors through gifts is liable to prosecution — and so is anyone who accepts such a gift. This is what Section 299 of the Criminal Code (StGB) states. There are no exact thresholds for the approved value of customer gifts. In individual cases, the decisive question is whether the gift is “socially adequate”: What was the previous business relationship? Does the recipient feel a sense of obligation due to the high value of their gift? Are expensive Christmas gifts common in your industry?
A building contractor who has concluded a deal worth millions with a supplier, for example, can certainly thank you for the good cooperation with a very expensive wine at the end of the year. However, if the entrepreneur is only about to close the lucrative deal, his donation may well be interpreted as an attempt at bribery. The secrecy of the gift delivery — because the wine bottle is delivered to the recipient's private address, for example — is also an indication that this is not “socially appropriate” behavior.
Exceptional case of cultural events
An invitation to events is a special case. The costs of such an invitation often exceed the value of the corresponding compliance guidelines in a company. But since cultural organizers in particular often issue ticket quotas to sponsors, the so-called Berlin Compliance Model was developed. This allows customers to be invited to cultural events under the following conditions:
- The invitation is not intended to influence future business decisions;
- The total amount of the invitation should generally not exceed 100 euros; with an accompanying person 200 euros;
- A transparent invitation should be sent to the business address or to the management or compliance officer;
- The invitee should not be an official;
- The invitation should contain a reference to the taxation based on a lump sum within the meaning of Section 37b EStG by the inviting company.
Exemptions for employee gifts
With regard to gifts to one's own employees, there is, of course, no problem of bribery. However, the legal exemptions for benefits in kind are important here. Gifts to employees in the form of benefits in kind are tax-free up to a value of 50 euros per month (see § 8 EStG). For special occasions, such as a birthday, these are tax-free of up to 60 euros. These amounts can also be combined.
conclusion
Due to the lack of value limit, the individual case must always be considered when choosing gifts for customers. However, companies can make this work easier by introducing appropriate compliance guidelines that ensure legal certainty for employees. Do you have any questions about compliance? Want to create a gift-giving policy? Our certified compliance officer is happy to assist you!
