Company events with a limited number of participants

In contrast to the allowance of 110 euros, the flat-rate taxation of wages as part of a company event is also possible for a limited number of participants.

Payroll tax can be deducted at a flat rate of 25 % for benefits provided by the employer as part of a company event. There is also a tax-free allowance of 110 euros per event and participant, up to which the employer's benefits are completely tax-free. However, the prerequisite for the tax-free allowance is that the company event is open to all members of the company or part of the company.

However, there has been no such restriction on flat-rate taxation since 2015, meaning that flat-rate taxation is also possible for company events that only certain employees are allowed to attend. The Federal Fiscal Court has now expressly confirmed this and approved a company's lump-sum taxation of Christmas parties for board members and senior management. Contrary to the opinion of the tax office, all that is required for lump-sum taxation is that an event takes place at company level with a social character. However, the occasion, group of participants or scope of the event have no influence on the lump-sum taxation option.