Key points
- Cash and cash-equivalent gift vouchers are always the most popular. Branded home appliances follow, while company souvenirs are the least popular.
- A starting point for prize allocation is 40% for grand prizes, 30% for medium prizes, 20% for small prizes, and 10% for all-participant prizes.
- Any single prize valued over NT$1,000 must be declared as income; over NT$20,000 requires withholding tax. Consult accounting for high-value prizes.
- Ensure all prizes are received and checked by D-10, not the day before the event.
Prizes are the easiest part of the year-end party budget to get wrong. Spending NT$600,000, only for the NT$12,000 robot vacuum to be the highlight of the event, happens every year.
1. Which Prizes Are Truly Popular
Based on actual event feedback, the popularity is generally as follows:
| Level | Item | Description |
|---|---|---|
| Most Popular | Cash | Nothing beats it |
| Department store/convenience store vouchers | Cash equivalent, low psychological burden | |
| E-commerce shopping credits | Particularly appreciated by younger staff | |
| Popular | Branded small appliances | Robot vacuums, air fryers, coffee machines |
| 3C products | Headphones, tablets, gaming consoles | |
| High-value home appliances | TVs, washing machines (beware of transport issues) | |
| Average | Travel accommodation vouchers | Depends on expiry and restrictions |
| Dining vouchers | Only impactful if high-value | |
| Least Popular | Company souvenirs | Unless the design is exceptional |
| Health supplements | Unappealing to younger demographics | |
| Overly niche items | Useless to the winner |
Cash or vouchers should make up at least half of the prize allocation. "Lack of creativity" is not an issue—no one complains about cash being uncreative.
2. How to Allocate the Budget
Prize budgets should be 10–15% of the total budget. For a total budget of NT$500,000, prizes should be around NT$50,000–75,000.
Starting allocation:
| Level | Prize Budget Share | Number (150 people) | Unit Price Reference |
|---|---|---|---|
| Grand Prize | 40% | 1–3 | NT$10,000–30,000 |
| Medium Prize | 30% | 5–8 | NT$2,000–5,000 |
| Small Prize | 20% | 15–25 | NT$500–1,500 |
| All-Participant Prize | 10% | Everyone | NT$100–300 |
Aim for a 20% winning rate (25–35 winners out of 150 people). This is the threshold for participants to feel they have a chance.
To achieve this winning rate without exceeding the budget, rely on "fewer grand prizes, more medium and small prizes"—avoid spending everything on one huge prize.
3. Taxation: Consult Accounting for High-Value Prizes
In Taiwan, there are practical considerations for prizes won through competitions and chance:
| Situation | Handling |
|---|---|
| Single prize market value ≤ NT$1,000 | Generally exempt from declaration |
| Single prize market value > NT$1,000 | Declare as winner's income, issue withholding certificate |
| Single prize market value ≥ NT$20,000 | Withholding at source (10% for residents) |
| Non-resident winner | Different withholding rate |
Practical Advice:
- For grand prizes (over NT$20,000), consult company accounting to confirm withholding methods and who bears the tax.
- A common practice is for the company to absorb the withholding tax, but this must be budgeted in advance.
- Winners must sign for their prizes and provide ID numbers for withholding certificates. Prepare the sign-off sheet.
- These regulations may change; follow the Ministry of Finance and your company's accounting advice. This article is a reminder that "this needs handling."
4. Procurement Timeline
| Timeline | Task |
|---|---|
| D-50 | Finalise prize budget, begin inquiries |
| D-40 | Confirm grand prize items and place orders (popular appliances may be out of stock) |
| D-30 | Procure medium and small prizes |
| D-14 | Procure all-participant and backup small prizes |
| D-10 | All prizes received, checked, and labelled |
| D-7 | Test draw method; print sign-off sheets |
D-10 is a firm deadline. If deliveries arrive the day before the event, there won't be time to address missing, incorrect, or damaged items.
5. Four Pitfalls of Physical Prizes
1. Too large to transport 55-inch TVs, washing machines—how will winners take them home that night? Solution: provide a redemption voucher on-site, with home delivery arranged later, and clarify who pays for shipping.
2. Out of stock Popular appliances are often out of stock during the year-end party season (December–February). Orders should be placed by D-40.
3. No physical display Prizes must be visible. Place the actual items or large images next to the stage to remind everyone throughout the night "this is still up for grabs." For purely digital prizes (shopping credits), create a representative card.
4. Winner not present Announce rules (call name twice, then redraw if no response), and prepare a procedure and deadline for unclaimed prizes.
6. On-Site Execution
- Prepare two prize lists: one for the host, one for the prize team, marking off each item as it is awarded.
- Sign-off sheets: Have winners of valuable prizes sign off, collecting ID information for tax purposes.
- Small prizes not on stage: Winners stand at their seats, and staff deliver the prize. In a venue for 150 people, walking to the stage takes 40–60 seconds.
- 2–3 backup small prizes: For unexpected situations (performers, birthday celebrants, long-serving staff) that require immediate use.
- Prizes must be supervised: Keep valuable prizes in a visible location.
7. Sample Budget (Total Budget NT$500,000, Prizes NT$65,000)
| Level | Item | Number | Unit Price | Subtotal |
|---|---|---|---|---|
| Grand Prize | Cash | 1 | 15,000 | 15,000 |
| Grand Prize | Robot Vacuum | 1 | 12,000 | 12,000 |
| Medium Prize | Department Store Vouchers | 5 | 2,000 | 10,000 |
| Medium Prize | Bluetooth Headphones | 3 | 3,000 | 9,000 |
| Small Prize | Convenience Store Vouchers | 20 | 500 | 10,000 |
| All-Participant Prize | Souvenirs | 150 | 40 | 6,000 |
| Backup | Flexible Small Prizes | 3 | 1,000 | 3,000 |
| Total | 65,000 |
Total of 30 prizes (excluding all-participant prizes), with a 20% winning rate for 150 people.
Checklist
- Prize budget is 10–15% of total budget
- Cash/vouchers make up at least half of the prize budget
- Winning rate is around 20%
- Tax handling for grand prizes has been confirmed with accounting
- Sign-off sheets are prepared (including ID information fields)
- Grand prizes ordered by D-40 (to avoid stock issues)
- All prizes received, checked, and labelled by D-10
- Delivery and shipping for large prizes are arranged
- Prizes or large images will be displayed on-site
- 2–3 backup small prizes
- Rules for absent and unclaimed prizes have been announced
→ How to Design a Lucky Draw Without a Dull Moment → How to Plan an Event Budget → Get a Year-End Party Process Template
Figures come from events we delivered and public sources. Actual terms vary by venue and date — always confirm with the venue.