Tax facts – Entertainment

Are you often left wondering what entertainment expenses you can claim? The guide below will give you a broad outline, but there are always exceptions to every rule.

Talk to us for more information or see the IRD Entertainment Expenses (IR268) booklet for more information.

Entertainment expenditure is limited to a 50% deduction if it falls within the following:

  1. Corporate boxes
  2. Holiday accommodation
  3. Pleasure craft
  4. Food and beverages consumed at any of the above or in other specific circumstances, for example:
    • Food and alcohol provided a a corporate box, or incidentally at any of the three types of entertainment above
    • Business lunch at a restaurant – or more generally away from the taxpayer’s business premises
    • The Christmas party – on the taxpayer’s business premises at a party, reception, celebration meal, or other similar social function for all staff, held on the business premises (excluding everyday meals provided at a staff cafeteria)
    • Friday night ‘shout’  – any event or function, on or away from your business premises for the purpose of staff morale or goodwill
    • The Executive dining room used to entertain clients – an area of the business premises reserved for use at the time by senior staff and not open to other staff.

If in doubt, keep your receipt and have a chat with us.

 

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