Cash gifts in Christmas are particularly popular in Germany. According to Statista, about 44% of Germans plan to give money for Christmas.
Related topic: Are gifts of money a good idea for Christmas?
Also, can money be given without unnecessary words, and is the recipient obligated to report these gifts to the tax authorities? There is a clear answer to this question.
Cash gifts at Christmas: Can they be given without reporting to the tax authorities?
Cash gifts have a bad reputation – considered uncreative, dull, and commonplace.
Nevertheless, cash and gift certificates are now among the most popular gifts under the festively decorated Christmas tree.
According to a survey by the consulting company Ernst & Young:
- About 44% of Germans would like to give money or vouchers. This is almost half of the citizens, which is quite a significant number.
- Sweets and food products come in second place with a share of 37%.
- Toys, clothing, and printed books also make it to the top five with shares of 34%, 32%, and 30% respectively.
The tax authority of North Rhine-Westphalia explains that donors and recipients usually have to inform the responsible tax office about donations. The Gift Tax Act makes an exception for incidental gifts that do not fall under reporting requirements.
This includes gifts such as Christmas presents or gifts for occasions like birthdays or weddings. According to the tax office NRW, there is no need to report small incidental gifts, such as theater tickets worth 100 euros, to the tax authorities.
In fact, there is no reason to worry even if the cash gift turns out to be larger. In the vast majority of cases, reporting thresholds range from 5,000 to 20,000 euros.
If the sums of money are particularly large, it is recommended to contact the relevant tax office directly to obtain accurate information on this matter. This will enable obtaining accurate clarification.
Related topics:
Holidays in Germany are a popular time for giving cash gifts, as seen with 44% of Germans planning to give money for Christmas. Additionally, large cash gifts may not always need to be reported to tax authorities, depending on the specific amount, as incidental gifts are typically exempt from reporting requirements.
