Product: givve Card non-cash benefit

The givve Card non-cash benefit is a prepaid Mastercard designed to facilitate the tax-compliant provision of non-cash benefits in accordance with Section 8 of the German Income Tax Act (EStG). Companies and public employers can use it to provide their employees with monthly tax-free benefits and make these funds available for specific purposes via a prepaid card. The card serves as a tool for employee benefits, helping to enhance employer branding as well as employee motivation and retention.

Category: Financial product based on a prepaid credit card

Product launch: 2014

Legal basis: The legal basis for non-cash benefits is Section 8(2), Sentence 11 of the German Income Tax Act (EStG). Since 2022, non-cash benefit cards must also meet the criteria of Section 2(1)(10) of the German Payment Services Act (ZAG).

givve Hub: The givve Hub is the central management platform for administering the givve Card in-kind benefit. givve customers (e.g., employers or public institutions) can use it to order cards, initiate card top-ups, view invoices, and perform other tasks.

givve App: The givve App is available to all users of the givve Card non-cash benefit. Here, users can view their card balance and recent transactions, as well as adjust settings. The givve App is available for Android and iOS and in more than 20 languages.

Card Material: High-quality PVC containing approximately 15–20% recycled plastic with silver embossing.

Payment network: Mastercard provides the payment network for the givve Card non-cash benefit.

Processor: Thredd Group Limited manages all operations and payment processes for Mastercard® and, consequently, for the givve Card non-cash benefit, as well as their oversight.

Card manufacturer: Exceet Card Group AG is the card manufacturer for the givve Card non-cash benefit. Exceet is a technology company specializing in electronics and security systems.

Acceptance Network: The givve Card non-cash benefit can be used at all Mastercard-accepting merchants within a specified region. Any business in the specified region that accepts Mastercard also accepts the givve Card non-cash benefit. The region includes a two-digit ZIP code area as well as all immediately adjacent two-digit ZIP code areas and can be customized for each card.

Distributor: PL Gutscheinsysteme GmbH distributes the givve Card non-cash benefit on behalf of an e-money issuer and is therefore an e-money agent pursuant to Section 2(1)(4) of the German Money Laundering Act (GwG).

E-money issuer of the givve Mastercard®: The givve Mastercard® distributed by givve is issued by DiPocket UAB (authorized by the Financial Supervisory Authority in Lithuania) under license from Mastercard International Incorporated. DiPocket UAB is headquartered in Vilnius, Republic of Lithuania.

Mobile Payment: The givve Card non-cash benefit can be integrated into mobile wallets such as Google Pay or Apple Pay.

The givve Card non-cash benefit  is regularly loaded with credit by the employer via the givve Hub. Employees can use this credit at Mastercard-accepting merchants within a defined region.

The card is technically restricted (Controlled Loop) to meet tax requirements.

The givve Card is:

• a benefits card

• a prepaid Mastercard

• an employee benefit

• a controlled-loop payment solution

For Employers:

• Tax-optimized benefits with no payroll costs, available even for a single employee

• A cost-effective alternative to a traditional pay raise

• Secure and compliant with legal requirements

• Strengthen employee retention and employer branding with custom card designs

• Easy management via the givve Hub

• Fast delivery and ready to use immediately 

For Employees:

• Higher take-home pay from gross salary, as it is tax- and social security-free

• Suitable for various employment arrangements, such as mini-jobbers and trainees

• Flexible use in everyday life

• High acceptance in local retail

• Tax-exempt non-cash benefits under Section 8(2), Sentence 11 of the Income Tax Act (EStG): The exemption limit for tax-exempt non-cash benefits is €50 per month per employee. If this limit is exceeded, the entire amount is taxable. 

• Tax-Exempt Gifts in Kind Pursuant to R 19.6, Paragraph 1 LSt: These include small tokens of appreciation or so-called gifts in kind up to an exemption limit of €60 gross (including sales tax). Personal occasions for such gifts include, for example, a birthday, a wedding, the birth of a child, or an employee’s anniversary. There is no upper limit or time restriction on how often or when a non-cash benefit may be granted, as long as a personal occasion exists.

• Recreation allowance under Section 40(2), Sentence 1, No. 3 of the Income Tax Act (EStG): Employers may pay their employees 156 euros once a year, 104 euros for a spouse, and 52 euros for each child. A flat tax rate of 25% is levied on the recreational allowance, which must be paid by the employer. The appropriate use (for recreational purposes) must be ensured and, if necessary, verifiable (hotel bill, etc.).

• Bonus payments and premiums under Section 37b(1) of the Income Tax Act (EStG): Business-related benefits and gifts (within the meaning of Section 4(5), sentence 1, no. 1) that are not in the form of cash may be taxed at a flat rate of 30% up to a value of €10,000. 

Tax-free non-cash benefits are one of the most popular and widely used employee benefits in Germany. With a digital non-cash benefit card like the givve Card non-cash benefit, it’s easy to implement a flexible, tax-optimized, and legally compliant solution.

Prepaid Karte: Die givve Card Sachbezug ist keine herkömmliche Kreditkarte, es gibt keine Debit Funktion.

Kein Bankkonto: Die givve Card Sachbezug ist kein gewöhnliches Bankkonto und kann nur zweckgebunden eingesetzt werden.

Controlled loop Card: Die givve Sachbezugskarte verfügt über keine eigene IBAN und ist technisch eingeschränkt („controlled loop“):

• Keine Abhebung von Bargeld bei Geldautomaten oder Supermärkten
• Keine Überweisung
• Keine eigene Karten IBAN

Please note: *We do not provide legal or tax advice. If you have any tax or legal questions regarding our products, we recommend that you have them reviewed by your tax or legal advisor. If you wish to use givve’s products to achieve specific tax and social security objectives (e.g., provision of non-cash benefits), we also recommend obtaining a preliminary ruling from the relevant tax office. givve assumes no liability for your actually achieving the intended tax and social security consequences.