Gifts for Employees’ Children – Tax-Free

Employers in Montenegro have a legal option to easily and tax-efficiently delight the children of their employees.

In accordance with current regulations, an employer may grant a gift of up to 50€ per year per child, provided that the child is under 15 years of age.

This amount is not considered part of the employee’s salary and is not subject to taxation.

HOW DOES THIS WORK IN PRACTICE?

If an employee has two children under the age of 15, the maximum non-taxable amount the employer may grant is:

2 × 50€ = 100€ per year

MOST COMMON USES OF THESE GIFTS

Employers most often use this benefit for:

• New Year gift packages
• Holiday gifts
• Symbolic rewards for employees’ children

IMPORTANT TO KNOW

Before granting the gift, pay attention to several key rules:

• The 50€ limit is annual (not monthly)
• The right is exercised per child under 15 years of age
• Any amount over €50 per child is considered taxable

Proper record-keeping and compliance with the limit are crucial to avoid tax risks

Contact us for additional information and professional advice—we will be happy to help you make the most of all legal options in the right way.

Smart business starts with good advice.