Basic Rule No. 1 (Additionality Requirement): Almost all benefits mentioned here must be granted in addition to the regular salary owed. A real salary conversion (e.g. waiving 50 € salary for a 50 € voucher) usually results in the loss of tax and social security exemption!

1. The 50 Euro Benefit in Kind

Employers can grant up to 50 EUR monthly tax and social security free.

• Tax & Social Security: 100% tax and social security free.
• Requirements: No cash payout. Only vouchers or prepaid cards strictly for goods/services that meet legal criteria.
• Attention: It's an exemption limit! If a voucher costs 50.01 EUR, the entire amount becomes taxable.

2. Travel Allowance

Allowances for commuting between home and the primary workplace.

• Tax & Social Security: 15% flat tax (paid by employer), completely social security free.
• Requirements: Max limit based on commuting distance allowance (0.30 EUR up to 20 km, 0.38 EUR from 21 km per working day).

3. Internet Allowance

Subsidizing the employee's private internet costs.

• Tax & Social Security: 25% flat tax (paid by employer), completely social security free.
• Requirements: Max. 50 EUR per month. Requires an informal declaration of internet costs.

4. Recreation Allowance

• Tax & Social Security: 25% flat tax (paid by employer), completely social security free.
• Requirements: Max. 156 EUR for employee, 104 EUR for spouse, 52 EUR per child per year. Must be linked to a vacation.

5. Kindergarten Allowance

• Tax & Social Security: 100% tax and social security free.
• Requirements: For non-school age children. Requires daycare invoice.

6. Personal Occasion Gifts

• Tax & Social Security: 100% tax and social security free.
• Requirements: Max. 60 EUR gross for personal events (e.g., birthday). Christmas does not count!

7. Health Promotion

• Tax & Social Security: 100% tax and social security free up to 600 EUR per year.
• Requirements: Course must be certified. Regular gym memberships are excluded.

8. Flat-rate taxation according to § 37b EStG

If gifts exceed the limits (e.g., 50 euros), the employer can take over the tax at a flat rate.

• Tax: The employer pays a flat 30% income tax on the value. The gift remains tax-free for the employee.
• Social security (Attention, mandatory contributions!): Unlike other flat-rate taxation methods, benefits in kind given to own employees under § 37b EStG are generally subject to social security contributions. The exception under § 1 Abs. 1 Nr. 14 SvEV does not apply here!
• Example: The employer gifts an iPad worth 600 €. Although the employer pays the 30% flat tax, regular social security contributions still apply to the value of the iPad and must be calculated and paid.