Benefits in kind according to Section 8(1) Sentence 3 of the German Income Tax Act (EStG) are a popular way for companies to provide their employees with a tax-advantaged benefit that doesn't require taxation or social security contributions—as long as it doesn't exceed the statutory tax-free allowance of 50 euros per month. This isn't a direct salary payment, but rather a non-cash benefit in the form of products or services. This is exactly where HelloBonnie comes in: With us, the 50-euro benefit in kind can be flexibly used across various categories—including mobility, meals, sports, culture, health, or education.
The major advantage for both employers and employees: Non-cash benefits motivate, show appreciation, and create real added value without incurring additional tax burdens. By offering these benefits, employers demonstrate recognition, strengthen emotional connection to the company, and position themselves as modern, employee-focused organizations. At the same time, employees enjoy tangible everyday perks that are perfectly aligned with their personal needs. Whether it's meal vouchers, streaming services, gym memberships, or new learning platforms – the HelloBonnie Smartcard transforms these benefits into a versatile experience that seamlessly integrates into your workforce's lifestyle.
Important: For the non-cash benefit to remain tax-free, the monthly allowance threshold must be strictly observed. Additionally, it cannot be provided as a monetary payment or cash disbursement. Compliance with these requirements is regularly monitored by regulatory authorities. Therefore, it's beneficial to work with a partner like HelloBonnie, who understands the legal framework and ensures simple and secure processing.
