Information regarding employee discounts and gifts

Gift. Jar of candies with gift tag
Photo by Paul Stollery on Unsplash

When planning your MEVO campaign, it’s important to know what prizes are considered acceptable – and legal – to reward the winners. In December 2018, new legislation regarding employee discounts and gifts was enacted here in Norway. Here is what that legislation entails:

  • Employee discounts are not considered taxable income up to NOK 8,000 per year. This also applies to goods and services traded in the employer’s business or in another company in the same group.
  • Discounts granted through employers’ suppliers or customers are also considered to be staff discounts.
  • Discounts should be calculated on the basis of the value of the goods or services in the retail market. This means that employees can receive a 100% discount on goods up to NOK 8,000, a 50% discount on goods up to NOK 16,000 and a 25% discount on goods up to NOK 32,000.
  • In April 2019, changes were made to how much an employee can receive as a gift. Non-monetary gifts from an employer with a value of up to NOK 2,000 per year are not considered taxable income.
  • For example, if you combine the rules regarding staff discounts and employee gifts, an employee in a clothing store may receive clothing for free up to a value of up to NOK 10,000 a year if both the gift and staff discount rules are fully utilized.

A great prize is an important ingredient to the MEVO recipe for success, so choose wisely. Be sure to check local employee gift and discount laws in your area before planning your campaign. Following these guidelines, as well as tips from our experts, will help ensure that your MEVO campaign is a triumph.

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