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https://steamcommunity.com/games/593110/announcements/detail/1301948399254001159
According to this discussion, the threshold is a 10% price difference:
https://steamcommunity.com/discussions/forum/1/1327844097132821276/
So, if your friend is in a region where the game is NOT on sale, or in a region where the difference in price exceeds 10% (due to exchange rate, sale price difference, etc.), you would not be able to gift it to them.
For example, if your friend is in the US (where the sale price on this game was also $19.80 USD), the conversion value of $19.80 CAD would be $15.25 USD - a great enough difference (10% of $19.80 would only allow for a $1.98 difference) that you would be unable to gift it "due to regional price differences".
I see thanks!
Also rip this new policy which is not cool