buksoGifts client gift employee gift 500
Not tax advice. General bookkeeping information only, checked against the official sources linked below (Canada Revenue Agency, IRS, provincial governments and Justice Laws) on Oct 17, 2026. Rules change; check with your accountant before you file.
Canada
Gifts to employees: under the CRA's policy, any number of non-cash gifts and awards for an arm's-length employee are not a taxable benefit if their total value is $500 or less in the year (including taxes). Only the amount over $500 is taxable. Cash and near-cash gifts are always taxable, and the policy does not cover relatives or shareholders. Trivial items like mugs or T-shirts don't count toward the $500. Client gifts are a normal business expense when they're reasonable; gifts of food, drinks or entertainment fall under the 50% meals and entertainment limit.
Official source: canada.ca