Tax Treatment of Gifts (Summary Table)
|Taxable/ Not taxable|
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.
Special occasions e.g. celebration of SG50, birthdays, weddings and births of child (cash/ non-cash)
Bereavement - wreath, condolence tokens, etc.
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.
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.