Gifts

Tax treatment of gifts given to employees for festive occasions (e.g. New Year) and special occasions (e.g. birthday or wedding).

Tax Treatment of Gifts (Summary Table)

Nature

Taxable/ Not taxable 

1

Festive occasions such as Chinese New Year, Hari Raya, Deepavali and Christmas (cash/ non-cash)

The gifts (e.g. red packets during Chinese New Year) are not taxable if they are not substantial in value and are generally available to all staff.

As a guide, a gift not exceeding $200 is considered to be not substantial in value. If the gift exceeds the exemption threshold, the full value is taxable.

 See Applying the Exemption Threshold (below).

 

2

Special occasions e.g. celebration of SG50, birthdays, weddings and births of child (cash/ non-cash)

 

3

Bereavement - wreath, condolence tokens, etc.

Not taxable

 

Festive Occasions/Special occasions (Cash/Non-Cash)

Cash and non-cash gifts relating to festive and special occasions which do not exceed the exemption threshold of $200 are considered to be not substantial in value and are not taxable due to an administrative concession granted.

If a gift exceeds the exemption threshold, the full value of the gift is taxable. For example, if the baby gift set is worth $250, the taxable value is $250.

The threshold of $200 is applicable per occasion.

Applying the Exemption Threshold

For example, an employee is given a cash gift of $200 on his wedding, a birthday gift of $50 and a Christmas gift of $80 in the same year.

All gifts are not taxable as the value of each gift does not exceed $200. The birthday gift given to an employee every year is also not taxable if each gift does not exceed $200.

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