Fact sheet- Entertainment expenses table

  Entertainment Expenses Table 50% deductible 100% deductible
1. Friday night drinks for team members or clients in the office  
2. Friday night drinks for team members or clients in the pub.  
3. Hire of a launch to entertain clients.  
4. Restaurants providing food and drinks to team members at a social function in their restaurant.  
5. 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.  
6. Sponsoring a sports team by providing a meal for the team at their grounds after each game.  
7. Staff Christmas party on or off the business premises.  
8. Taking a client out to dinner while you are out of town on business in New Zealand.  
9. Taking a client out to dinner.  
10. A weekend away for the team at holiday accommodation in New Zealand. Includes any food and drink provided.  
11. Dinner for Sales Rep while out of town selling and no client present.  
12. Donating food to a Christmas party in a children’s hospital.  
13. Providing entertainment, including food and drink at your promotional stand for the local Christmas Festival open to the public.  
14. Employee’s salary package includes a taxable allowance for entertaining clients.  
15. Golf club subscription for business owner paid by the Company. *  
16. Gym membership for team member paid by employer. *  
17. Providing a meal for a journalist while reviewing your business for their column.  
18. Providing morning and afternoon tea for your team.  
19. Sandwiches provided at a lunchtime meeting of supervisors.  
20. Sponsoring a local sports team.  
21. Taking a client out to dinner while you are out of town on business outside New Zealand.  
22. Holding the team Christmas party in Fiji.  

* Note that 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.

Last reviewed: 20 February 2018