What are Gifts?
Gifts are an amount offered by the employer to be redeemed exclusively on the Swibeco platform, in accordance with our General Terms and Conditions.
When an employer offers Gifts to its employees, they are considered gifts in kind.
Applicable legal framework
At this point, the question arises as to whether these gifts are subject to (1) social security (employer and employee) and (2) income tax (employee).
1) Social security: according to the “Directive on the determining salary in the AHV, IV and EO” of the Federal Social Insurance Office (hereinafter the “Directive”), point 2158 1/26 states that the situation is regulated as follows (non-official translation):
“Gifts in kind. These are benefits usually granted on special occasions, such as Christmas and New Year’s Eve, or as a one-off reward for exceptional performance or special tasks, whose total value does not exceed CHF 600 per year. The decisive value is the cost price for the employer. Gifts in gold or silver (including coins and ingots) and in WIR currency are considered gifts in kind. Cash gifts are treated as gratuities and form part of the relevant salary.”.
The Directive does not exist in English. However, it can be consulted in German, French, or Italian below.
- Wegleitung über den massgebenden Lohn in der AHV, IV und EO (WML)
- Directive sur le salaire déterminant dans l’AVS, AI et APG
- Direttive sul salario determinante nell’AVS/AI e IPG
2) Income tax: The situation regarding income tax is regulated by the “Guide to the preparation of the salary certificate and the pension certificate” of the Federal Tax Administration (hereinafter “the Guide”). The Guide does not exist in English. However, it can be consulted in German, French, or Italian below.
Section II, article 72, 3rd indent, states that the following benefits do not have to be declared on the salary certificate (non-official translation): “Christmas, birthday or other customary gifts with a value of CHF 600 or less per calendar year. If the value of the gift exceeds this amount, declare its full value (section 2.3 of the salary certificate). Cash gifts must always be declared on the salary certificate as part of the salary.”.
- Wegleitung zum Ausfüllen des Lohnausweises bzw. der Rentenbescheinigung
- Guide d’établissement du certificat de salaire et de l’attestation de rentes
- Istruzioni per la compilazione del certificato di salario risp. dell’attestazione delle rendite
Conclusion
If the employer grants gifts that (i) are given for events other than those mentioned above, or (ii) exceed the applicable CHF 600 threshold, the excess amount (and, where relevant, the full benefit) must be treated as salary, subject to social security contributions, and declared on the salary certificate.
For any further questions, the employer should contact their fiduciary or tax expert. Swibeco is not responsible for the declaration (or non-declaration) of Gifts to the social insurance authorities or on the salary certificate of the employees.
