Deductions for welfare measures
Businesses are entitled to deductions for expenses related to increasing job satisfaction and improving the work environment.
Does this apply to me?
This applies to you if you run a business and have expenses for welfare measures for persons related to the business.
What you need to do
- consider whether the business is entitled to a deduction for the expenses
- enter the expenses into the accounts
- keep documents showing the expenses you’re claiming a deduction for
Conditions for deductions
The participants can only include owners, partners, employees, board members in a limited company, auditors, or shareholders. Participants may, if applicable, be joined by a companion.
The welfare measure must fulfil all these conditions:
- it must be in the employees’ interests
- it must be related to the business’ income-generating activity
- it must be reasonable
Typical examples of welfare measures are office Christmas parties, company trips, company-owned cabins and contributions to the company sports team.
Contributions to, for example, fees for a fitness studio with access to others than the company’s employees, do not qualify as a welfare measure.
- business without employees
- businesses where one or more of the employees’ working hours and salary together do not add up to one full-time position
- limited companies owned by one individual, possibly jointly with a spouse or cohabiting partner. The company must have other employees who together add up to one full-time position. The employees cannot be spouses/cohabiting partners or family members in a direct ascending or descending line.
Borderline cases
There may be borderline cases where the expenses are considered advertising or representation, not welfare measures.
Supporting documentation
You do not need to send us any documentation, but you must be able to present supporting documents for any expenses that you claim deductions for if we ask you to.