Valuation of benefits in kind at a company event

The assessment basis for the lump-sum wage tax on benefits in kind on the occasion of a company event depends on the lump-sum regulation used.

In the case of lump-sum taxation of benefits and non-cash benefits as part of a company event, a company can choose for its employers between the general lump-sum taxation requirements of wage tax law and the special lump-sum taxation requirement for non-cash benefits. For customers and other business partners, however, the special rule for non-cash benefits always applies. The Federal Fiscal Court has now clarified that only those costs incurred by the employer that can trigger a non-cash benefit for the employee are to be included in the general lump-sum payment of an employee's non-cash benefits. The Federal Fiscal Court expressly does not include expenses for an event manager among these costs.

Under the special flat-rate rule for non-cash benefits, on the other hand, all expenses directly attributable to the benefit must be included in the tax base, regardless of whether they may result in a benefit for the recipient. Thus, the costs of the event agency are also to be included here. The Federal Fiscal Court justifies the constitutionality of this unequal treatment by stating that the employer can choose between the two flat-rate regulations for its employees.