In Belgium, employers can give employees a small gift at the end of the year without triggering social security contributions or payroll withholding tax, as long as it stays within a strict €40 ceiling. This article explains the year-end gift exemption (the "eindejaarsgeschenk" rule), a separate exemption for personal-life events like a marriage or birth, how client gifts are treated differently, and 12 gift ideas that comfortably stay under €40.
The €40 year-end gift rule
Gifts given to employees on the occasion of Saint Nicholas, Christmas, or New Year remain exempt from social security (RSZ/ONSS) contributions and payroll withholding tax, up to €40 per employee per year. On top of that, employers can add another maximum of €40 per year per dependent child of the employee, so a parent of two children could receive up to €120 tax-free in year-end gifts in the same year.
This is a threshold, not a partial exemption. If the value of the gift exceeds the limit, even by a small amount, the full benefit becomes taxable as ordinary salary, subject to both payroll withholding tax and social security contributions, not just the portion above €40. It's a cliff-edge test: staying at €39.99 keeps the whole gift exempt, going to €41 makes the whole gift taxable.
The gift remains deductible as a business expense for the employer, provided it stays under the limit. Two further conditions matter:
- Cash doesn't count. The exemption applies to gifts in kind or gift vouchers, not to meal vouchers, and not to direct cash payments, which are always treated as ordinary salary regardless of amount.
- The occasion has to match. The exemption is specifically tied to Saint Nicholas, Christmas, or New Year — it isn't a general-purpose allowance for gifts given at any point in the year.
Social benefits for personal occasions
Separately from the year-end gift, Belgian tax rules also exempt gift vouchers given for a clear social purpose tied to a personal event in an employee's life, such as a marriage or the birth of a child. These vouchers (again, not meal vouchers) are exempt up to €50 and don't count as salary, as long as they aren't compensation for work performed.
This is a distinct exemption from the €40 year-end gift rule, with its own threshold, its own qualifying occasions, and its own €50 ceiling. The two shouldn't be confused or combined; an employer can use both in the same year for the same employee, since they cover entirely different occasions.
12 gift ideas under €40
1. Recycled PET Pen: the everyday essential
A low-cost, sustainable pen that works as a standalone token or a small add-on to a bigger gift bundle.
- Material: recycled PET plastic body.
- Branding: pad print or laser engraving.
- Order: MOQ 300 · from €1.33/unit.
2. Sports Socks: the safe favourite
Sunday's most-ordered item: a small, unexpected gift that always lands well and leaves plenty of room under the €40 cap.
- Material: 80% cotton, 17% polyamide, 3% elastane.
- Branding: knitted-in logo zones.
- Order: MOQ 100 · from €4.00/unit.
3. Americano Mug: the classic that never goes out of style
Every office runs on coffee, and a branded mug is a dependable gift that gets used every single day.
- Material: durable ceramic, dishwasher and microwave safe.
- Branding: full-colour print or engraving.
- Order: MOQ 108 · from €4.04/unit.
4. A5 Notebook: FSC-certified paper
An A5 hardcover with elastic closure and ribbon marker: practical, with a traceable material story behind it.
- Material: FSC-certified paper, PU cover.
- Branding: debossing or print on the cover.
- Order: MOQ 100 · from €4.58/unit.
5. Premium Tote Bag: the lightweight carry
A heavyweight cotton tote with a premium feel: everyday enough that it actually gets used long after December.
- Material: 270gsm cotton.
- Branding: print or custom straps.
- Order: MOQ 100 · from €6.44/unit.
6. Knitted Scarf: the cosy extra
A high perceived-value item that fits the season perfectly, ideal for a Saint Nicholas or Christmas gift.
- Material: 80% viscose, 20% polyester.
- Branding: woven label.
- Order: MOQ 100 · from €7.66/unit.
7. Canvas Travel Pouch: the low-MOQ pick
A neat little pouch for cables, toiletries, or odds and ends, with a minimum order quantity low enough for smaller teams.
- Material: heavyweight cotton canvas.
- Branding: print or embroidered patch.
- Order: MOQ 25 · from €8.30/unit.
View the Canvas Travel Pouch →
8. Baseball Cap: the everyday accessory
An affordable, highly visible accessory that works all year round, not just for the holidays.
- Material: 100% cotton.
- Branding: embroidery.
- Order: MOQ 100 · from €8.34/unit.
9. Espresso Mug: for the morning coffee
A compact espresso-sized mug: a small everyday object that sits on the desk long after New Year.
- Material: ceramic.
- Branding: print.
- Order: MOQ 108 · from €8.44/unit.
10. Stainless Steel Bottle: keeps drinks cold and desks tidy
A well-insulated bottle is a gift employees will actually reach for every day, still comfortably under the €40 threshold.
- Material: double-wall insulated stainless steel.
- Branding: laser engraving or full-colour wrap print.
- Order: MOQ 50 · from €9.57/unit.
View the Stainless Steel Bottle →
11. Wireless Mini Speaker: a genuinely fun gift
A compact Bluetooth speaker earns a genuine thank-you: useful, a little fun, and easy to carry home for the holidays.
- Material: ABS housing with a fabric-wrapped speaker grille.
- Branding: printed or engraved logo on the base.
- Order: MOQ 50 · from €10.34/unit.
View the Wireless Mini Speaker →
12. Recycled Steel Bottle: everyday hydration
Vacuum insulation in recycled stainless steel: a gift that gets used and seen every day, and still leaves headroom under €40.
- Material: recycled stainless steel.
- Branding: laser engraving or print.
- Order: MOQ 50 · from €11.00/unit.
View the Recycled Steel Bottle →
What about client gifts?
Different rules apply to gifts for clients and business relations, and they shouldn't be confused with the employee rules above:
- Standard deductibility. Client gifts are 50% tax-deductible as long as their value stays under €250.
- Promotional items. Advertising items are 100% deductible, provided they're distributed on a large scale, have a low unit value, and permanently and clearly display the company logo.
- VAT. VAT is fully recoverable on a maximum of one gift per client per year, if the value stays under €50 excluding VAT.
For the full detailed breakdown, read our French-language guide (Cadeaux de fin d'année) or Dutch-language guide (Belastingvrije eindejaarsgeschenken).
Common mistakes
- Forgetting the per-child addition. The €40 year-end gift limit isn't fixed at €40 per employee; it can rise by another €40 for each dependent child, and many employers under-claim this by mistake.
- Confusing the year-end gift with the personal-occasion social benefit. The €40 Saint Nicholas/Christmas/New Year exemption and the €50 marriage-or-birth exemption are two separate rules with separate ceilings and separate qualifying occasions.
- Mixing up employee and client gift rules. The €40 exemption applies only to employees. Client and business-relation gifts follow entirely different deductibility and VAT rules.
Note: this article is a general explainer, not tax advice. Thresholds and rules can change — confirm how they apply to your business with your accountant.
This guide is part of our complete country-by-country series. See Employee Gift Tax Rules by Country: The Complete 2026 Guide for all 43 countries.
Order gifts for your team
Every product above is fully customisable with your branding and available in business order quantities. Browse the full range in the Sunday catalogue to put together a year-end gift that stays comfortably within the €40 exemption.
