Taxation and payroll obligations related to gift vouchers

Employees can be rewarded with favourable taxation up to three times a year with so-called low-value gifts. These can be a service or a specific item, such as a book, but can also be a gift voucher. At the same time, the employer must provide this information to payroll, and it is important to record it in the internal records as well.

Correct accounting and payroll treatment of low-value gifts and gift vouchers

Regulations regarding low-value gifts

• It may be granted a maximum of three times per year.
• Its value shall not exceed 10% of the minimum wage on a single occasion, which amounts to HUF 29,080 in 2025, resulting in a total annual limit of HUF 87,240.
• They will be taxed as specific benefits, so the total tax burden is only 33.04%. The tax base is 1.18 times the value of the benefit, on which 15% personal income tax and 13% social contribution tax must be paid.
• It may also be granted to close family members.
• The gift may be a product, a service, or a voucher, but the voucher must be limited to a specific product or service — for example, it can only be redeemed in a particular store or for a certain category of products, and it must not be redeemable for cash.

What does it mean that a voucher must be limited to a specific product or service?

Vouchers that can be redeemed only for specific products or services are acceptable — for example, those intended for cultural or leisure activities, or vouchers issued by bookstore chains. However, general vouchers from hypermarkets are not acceptable, as they can be used for a very broad range of products. The real challenge arises with vouchers from smaller stores, such as drugstores, where various types of products are available, yet the store is still more or less specialized. Therefore, it is advisable to consult with the payroll colleague before selecting a voucher to determine which type is acceptable.

Administrative tasks related to low-value gifts

• requesting a document issued in the name of the employer at the time of purchase
• informing the payroll department about the gifting for payroll processing
• Maintaining internal records of low-value gifts and gift vouchers, including the following details
• the date of the benefit,
• the value of the benefit
• the name of beneficiary,
• the form of the benefit (e.g., type of voucher, name of the store, invoice number),
• the purpose of the benefit,
• the number of occasions.

What happens if the regulations regarding low-value gifts are not complied with?

If the rules are not followed, the benefit is considered income from employment and is taxed as salary.

If you have any questions regarding the practical application or administration of gift vouchers or other fringe benefits, please feel free to contact our experienced consultants and payroll team at LeitnerLeitner!