The Work-Related Expenses Scheme (WKR) allows employers to spend a certain amount tax-free on employee benefits, including parties. In 2026, this allowance will be 1.7% of your total taxable payroll.
So, with a total payroll of 500,000 euros, you can spend 8,500 euros tax-free. If the amount exceeds that, you’ll pay an 80% withholding tax on the excess. But there’s a handy exception: a staff party held at the workplace is tax-free and doesn’t count toward the tax-free allowance.
So, smart planning pays off. We’d be happy to advise you on how to organize your staff party in a tax-efficient way. That way, you’ll have more of your budget left for what really matters: a great evening for your team.
Want to learn more about organizing a staff party? Read our full article →