Exempt Gifts
Employer gifts up to ₪230 per event are exempt from income tax for the employee. Qualifying events include: Jewish holidays (Rosh Hashana, Pesach, etc.), employee's birthday, wedding, and birth of a child. Above this threshold, the full amount becomes taxable income.
Cash vs. In-Kind
Cash gifts are always taxable regardless of amount (the ₪230 exemption applies to non-cash gifts only). Gift cards may be treated as cash equivalents and taxed accordingly. In-kind gifts (food baskets, merchandise) up to ₪230 per event qualify for the exemption.
Planning Tips
- Distribute gifts on recognized occasions to qualify for the exemption
- Keep gifts at or below ₪230 to avoid tax complications
- Document the occasion and recipient for each gift
- Cash bonuses should be processed through payroll (fully taxable)
- Group gifts exceeding ₪230 per person are fully taxable
בסיס חוקי
- Income Tax Regulations – Employee gift exemption
Important Note: The information on this website is for general informational purposes only and does not constitute professional tax advice. Consult a qualified tax advisor before making financial decisions.