Important information about Benefits in Kind pursuant to §37b EStG (Benefits in Kind subject to flat-rate taxation)

How do I find out about my Benefit in Kind 37b?

How to redeem your Benefit in Kind 37b

Where can I find my selected voucher?

FAQ – Benefits in Kind 37b

Important information about Benefits in Kind pursuant to §37b EStG (Benefits in Kind subject to flat-rate taxation)

Benefits in Kind 37b are special benefits provided by the employer, such as vouchers, gifts, event invitations, or small bonuses, which are not part of the regular salary but are granted in addition to it. They are intended as a token of appreciation or recognition - for example, on special occasions or for certain achievements.

In contrast to normal monetary benefits, the employer pays the flat-rate tax (30%) on these benefits, so that you as an employee do not have to pay any tax. You are also not required to pay social security contributions.

When can I receive such a Benefit in Kind?

Whether you receive Benefit in Kind depends entirely on your employer's decision. Typical occasions for this may include:

• Special events
• Recognition for an achievement or project
• Attendance bonus

Benefits in Kind pursuant to §37b EStG are not paid automatically, but are usually awarded on a case-by-case basis or as part of specific programs.

Important to know:

• The allowance is in addition to your salary and is not part of your normal remuneration
• The amount is not declared in your tax return, as the tax has already been paid by your employer at a flat rate
• You do not need to submit any proof or application of your own

How do I find out about my Benefit in Kind 37b?

If your employer has configured a Benefit in Kind 37b for you, you will be notified on the relevant day:

• Push notification: This will appear if you have activated notifications in your app. Otherwise, you will receive the information about the benefit in kind the next time you open your app.
• E-mail: Depending on your employer's settings, you will also receive a notification by e-mail.

How to redeem your Benefit in Kind 37b

In your app, you will find a note saying that you have an “Extra surprise.” If you click on it, you will find a message that your employer has left for you.

You will also see the amount of your voucher here. You have the option of choosing your voucher immediately or at a later date.

Important note: Select your desired voucher before the end of the year, otherwise the security voucher will be activated automatically on December 31st around 5 pm UTC. If no security voucher has been deposited, you will receive a voucher from Rossmann at the end of the period.

If you have push notifications for Probonio enabled, you will receive regular reminders here that you have not yet selected your voucher.

Where can I find my selected voucher?

Once you have selected a voucher, you will find it in your voucher overview in the app. It will be marked with the note “Gift cards”. You can then redeem the voucher as usual, similar to your gift cards.

Important note:

The Benefit in Kind 37b is tied to specific occasions, and the selection of vouchers depends on your employer's configuration. Please also note that not all voucher providers may be available.

FAQ – Benefits in Kind 37b

What exactly is a Benefit in Kind 37b?

A Benefit in Kind 37b is a gift, voucher, or invitation that you receive in addition to your salary—e.g. as a small thank-you, on an anniversary, or for special achievements. Your employer pays the tax for you.

Do I have to pay tax or social security contributions on the Benefit in Kind?

No. Your employer pays a flat-rate tax of 30% – for you, the payment in kind is therefore tax- and social security-free.

Do I have to apply for this myself or provide any proof?

No. You don't have to do anything. Your employer will take care of the processing and tax treatment in the background.

Will the Benefit in Kind be deducted from my salary?

No. This is an additional benefit that is not part of your regular salary and will not be deducted from other benefits.

When will I receive such a Benefit in Kind?

That is up to your employer. Common reasons include: achieving targets, exceptional commitment, work performance, suggestions for improvement, employee recruitment, attendance bonus, signing bonus, profit sharing.

Can I also have the amount paid out to me?

No. The Benefit in Kind may not be paid out in cash—otherwise it would be taxable. It must always be a benefit in kind (e.g. voucher, gift, event admission).

Do I have to declare this on my tax return?

No, you don't. The flat-rate tax is paid in full by your employer and is taken care of for you.

How long do I have to choose my voucher?

The voucher must be chosen in the same calendar year. If this does not happen, the security voucher that has been deposited will automatically take effect. If no security voucher has been deposited, a Rossmann voucher will be issued.

Note: This information is for general guidance only. A binding and legally secure tax assessment can only be made by the relevant tax office or a tax advisor.

Translation Note: This article has been translated using automatic translation software to provide the reader with a basic understanding of the content. Despite reasonable efforts to provide an accurate translation, we cannot guarantee its accuracy.

If there are any questions regarding the accuracy of the information in the translated article, please refer to the German version of the article, which is the official version.