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
Fact sheet- Entertainment expenses table