If you're planning to give employees a gift in Colombia, here's the honest answer upfront: there is no tax-free allowance. Unlike some countries that carve out a small annual exemption for non-cash employee gifts, Colombia taxes in-kind gifts from the very first peso. A holiday hamper, a branded hoodie, a gift card, anything you hand an employee as a "thank you" is treated as taxable income the moment it lands in their hands.
That doesn't mean you should stop gifting. It means you should budget for it correctly, document it properly, and set expectations with your team. Below we explain why there's no threshold, how this differs from Colombia's mandatory prima de servicios, walk through 12 gift ideas, and cover the separate rules for client and business-partner gifts.
Why there's no gift allowance in Colombia
In most payroll systems, anything of value an employer transfers to an employee outside of cash wages still counts as compensation. Colombia applies this principle strictly. Under Colombian tax law, any non-cash benefit given by an employer to an employee, referred to as ingreso en especie (income in kind), forms part of the employee's gross labor income. That includes vouchers, merchandise, gift baskets, event tickets, and similar items.
There is no monetary floor below which a gift is ignored for tax purposes. A notebook worth a few thousand pesos and a high-end backpack are treated the same way in principle: both are added to the employee's taxable income and are subject to income tax and payroll withholding. Colombia also makes no favorable distinction between cash and non-cash gifts, both are income to the employee, full stop. If you're used to jurisdictions with a small de minimis exemption, this is the detail that catches employers out.
Practically, this means the value of the gift should be reported through payroll like any other in-kind benefit, with withholding calculated accordingly. Employers who skip this step aren't saving their employees money, they're creating an under-reporting problem.
Don't confuse this with prima de servicios
It's easy to lump "prima de servicios" in with gift-giving because it also shows up as extra money employees receive outside their normal paycheck. It shouldn't be. Prima de servicios is a mandatory statutory labor benefit in Colombia, essentially an extra month's salary per year, paid in two installments: by June 30 and by December 20. Virtually all employees are legally entitled to it, and employers are legally required to pay it.
That's fundamentally different from a discretionary holiday gift or a merchandise thank-you. Prima de servicios is not optional, not a gesture of appreciation, and not something you can substitute with a branded water bottle. Keep the two conversations separate: one is a legal obligation tied to compensation law, the other is a voluntary gift that happens to also be taxable. Conflating them in employee communications, or in your own budgeting, is a common and avoidable mistake.
12 gift ideas
Since there's no tax advantage to keep in mind, choose gifts the same way you'd choose any piece of company merchandise: for quality, relevance, and how well it represents your brand. Here are 12 options across a range of price points.
Hoodie – The Rex
A heavyweight hoodie is a gift people actually wear, which makes it a strong choice when you want a branded item that stays visible long after the holiday season. It works well as a standalone gift or as the anchor piece in a small welcome kit.
- Material: Heavyweight cotton-blend fleece.
- Branding: Embroidery or large-format print on chest or back.
- Order: MOQ 100 · from COP 168.400/unit.
Sports Socks
A low-cost, high-frequency-use gift. Socks are an easy add-on to a larger bundle, or work as a light thank-you for interns and short-term staff where a bigger gift isn't warranted.
- Material: Cotton-blend knit with elastic support.
- Branding: Woven logo on the ankle or sole.
- Order: MOQ 100 · from COP 16.800/unit.
Recycled Steel Bottle
A durable, everyday-use item that also signals a sustainability angle, useful if your company wants its gifting to reflect environmental values as well as generosity.
- Material: Recycled stainless steel, double-wall insulated.
- Branding: Laser engraving or full-color wrap print.
- Order: MOQ 50 · from COP 46.200/unit.
A5 Notebook
A practical, inexpensive gift for onboarding kits, all-hands events, or as a filler item alongside a bigger centerpiece gift.
- Material: Hardcover with recycled paper pages.
- Branding: Foil stamp or debossed logo on the cover.
- Order: MOQ 100 · from COP 19.300/unit.
Premium Tote Bag
A versatile carry item that works for commuting, groceries, or travel, making it one of the more universally useful options on this list.
- Material: Heavyweight canvas with reinforced handles.
- Branding: Screen print or embroidered logo.
- Order: MOQ 100 · from COP 27.100/unit.
Knitted Scarf
A seasonal gift with a warmer, more personal feel than typical office merchandise, well suited to year-end or holiday gifting.
- Material: Soft acrylic-wool knit blend.
- Branding: Woven label or small embroidered logo.
- Order: MOQ 100 · from COP 32.200/unit.
Baseball Cap
A classic, low-cost branded item that pairs well with apparel gifts or works on its own for company events and outdoor activities.
- Material: Cotton twill with adjustable strap.
- Branding: Embroidered logo on the front panel.
- Order: MOQ 100 · from COP 35.100/unit.
Espresso Mug
A desk-side essential that keeps your brand visible during the workday, whether at the office or working from home.
- Material: Ceramic, dishwasher and microwave safe.
- Branding: Full-color print or laser engraving.
- Order: MOQ 108 · from COP 35.600/unit.
Bamboo Tea Bottle
Combines a sustainable material with a functional design, a good mid-range gift for employees who prefer tea or infused drinks over coffee.
- Material: Bamboo exterior with glass infuser.
- Branding: Laser engraving on the bamboo band.
- Order: MOQ 50 · from COP 78.700/unit.
RollTop Backpack
A premium, higher-value gift suited to milestone anniversaries, senior hires, or top performers, built for daily commuting and laptop carry.
- Material: Water-resistant recycled polyester.
- Branding: Debossed patch or embroidered logo.
- Order: MOQ 25 · from COP 103.400/unit.
Noise-Cancelling Headphones
A high-impact tech gift, particularly appreciated by remote and hybrid employees who need to focus in noisy environments.
- Material: ABS housing with memory-foam ear cushions.
- Branding: Laser-etched logo on the ear cup or case.
- Order: MOQ 50 · from COP 103.000/unit.
View Noise-Cancelling Headphones
Wireless Powerbank
A practical tech gift that gets daily use, well suited to teams that travel frequently or work outside a fixed office.
- Material: Aluminum-finish ABS casing.
- Branding: Printed or engraved logo on the front face.
- Order: MOQ 50 · from COP 77.500/unit.
Client and business-partner gifts: the 1% cap
The rules change when the gift goes to a client, supplier, or business partner instead of an employee, but that doesn't mean unlimited. Under Article 107-1 of Colombia's Estatuto Tributario, deductions for "atenciones a clientes, proveedores y empleados" (gifts, courtesies, parties, meetings, and celebrations) are capped at 1% of the taxpayer's net fiscal income, calculated as gross income minus returns, rebates, and discounts, minus non-taxable income.
To qualify for the deduction at all, the spending must be properly documented, form part of the ordinary course of business, and be connected to the company's habitual commercial activities. Anything spent above the 1% threshold is permanently non-deductible, there's no carryforward to future tax years. If your finance team is planning client gifting around year-end, this cap should be part of the budget conversation from the start, not discovered during the tax filing.
VAT on giveaways
Colombia's standard VAT rate is 19%, and it applies even when no money changes hands. When a business gives away taxable goods, whether as client gifts, samples, or promotional merchandise, this is treated as a deemed sale ("retiro de inventario" / inventory withdrawal). The business is required to issue an invoice and charge VAT calculated on the item's commercial value, not its cost.
This catches companies off guard because it feels counterintuitive: you're giving something away for free, yet you still owe VAT on it as though it were sold. Build this into your gifting budget and your invoicing process ahead of time so it doesn't surface as a surprise adjustment later.
Common mistakes
- Assuming a small gift is tax-free, like in some other countries. It isn't in Colombia. There is no threshold, no de minimis exemption, and no distinction based on the gift's value, if it's in-kind income to an employee, it's taxable from the first peso.
- Confusing prima de servicios with discretionary gifting. Prima de servicios is a separate, mandatory statutory payment owed to essentially all employees twice a year. It is not a gift and shouldn't be planned or communicated alongside voluntary employee gifting.
- Exceeding the 1% net-fiscal-income cap on client gifts. Spending above the Article 107-1 threshold doesn't just reduce your deduction, it eliminates it entirely for the excess, with no ability to carry the difference forward to a future year.
If you're setting up an ongoing employee gifting program rather than a one-off order, Sunday's employee gifting platform handles sourcing, branding, and delivery in one place.
This article is for general informational purposes and does not constitute tax or legal advice. Colombian tax rules can change and their application depends on your specific circumstances, consult a qualified Colombian tax advisor or accountant before making gifting or payroll decisions.
Want to see how other countries handle employee gift taxation? Check out our full comparison in the employee gift tax rules by country guide. And when you're ready to choose gifts, browse Sunday's catalog for branded merchandise that ships to Colombia. Sunday also supports enterprise-scale rollouts across multiple countries — see the full Sunday platform for details.
