What you need to know about making claims. Tax deductible or not?
Expenses 50% Deductible
- Friday night drinks for team members or clients in the office.
- Friday night drinks for team members or clients in the pub.
- Hire of a launch to entertain clients.
- Restaurants providing food and drinks to team members at a social function in their restaurant.
- Sponsoring local sports teams and receiving tickets to their corporate box in return. 50% of the value of the tickets would be deducted from the total sponsorship.
- Sponsoring a sports team by providing a meal for the team at their grounds after each game.
- Staff Christmas party on or off the business premises.
- Taking a client out to dinner while you are out of town on business New Zealand.
- Taking a client out to dinner.
- A weekend away for the team at holiday accommodation in New Zealand. Includes any food and drink provided.
Expenses 100% Deductible
- Dinner for Sales Rep while out of town and no client present.
- Donating food to a Christmas party in a children’s hospital.
- Providing entertainment, including food and drink at your promotional stand for the local Christmas Festival open to the public.
- Employee’s salary package includes a taxable allowance for entertaining clients.
- Golf club subscription for business owner paid by the Company.*
- Gym membership for team member paid by employer.*
- Providing a meal for a journalist while reviewing your business for their column.
- Providing morning and afternoon tea for your team.
- Sandwiches provided at a lunchtime meeting of supervisors.
- Sponsoring a local sports team.
- Taking a client out to dinner while you are out of town on business outside New Zealand.
- Holding the team Christmas party in Fiji.
*Note: Expenses incurred in providing golf club subscriptions and gym memberships to employees are 100% deductible and not subject to the Entertainment Expense 50% limitation. However, these expenses will be subject to Fringe Benefit Tax, therefore there will still effectively be a tax cost in providing this benefit.
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