Tax Facts
Entertainment
We often get asked the rules around entertainment expenditure. Simply put, entertainment expenses are limited to a 50% deduction if it falls within the following:
- Food & Beverages consumed. For example
- business lunches
- alcohol and food provided in a corporate box
- social function on or away from company’s premises
- shout functions on or away from company’s premises
- gifts of food & beverages given to clients
- supporting expenses in providing entertainment, like music or waiting staff
- Corporate boxes
- Holiday accommodation
- Recreational boats
There are a number of exemptions from these rules, so please contact us if you are unsure, or see the https://www.classic.ird.govt.nz/forms-guides/number/forms-200-299/ir268-guide-entertainment-expenses.html booklet for more information.