The table below shows the rate at which each type of expense can be deducted against your taxable income, in other words, how much you can reduce your tax bill. It is highly specific as the IRD are aware that business people love to claim an entertainment cost! Beany always checks your entertainment account at the year end - but if you want to check something out, take a look below.
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Entertainment Expenses Table |
50% Deductible |
100% Deductible |
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Friday night drinks for team members or clients in the office |
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Friday night drinks for team members or clients in the pub |
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Hire of a launch to entertain clients |
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Restaurants providing food and drinks to team members at a social function at the restaurant |
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Sponsoring local sports teams and receiving tickets to their corporate box in return. 50% of the cost of the tickets would be deducted from the total sponsorship. |
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Sponsoring local sports team by providing a meal for the team at their grounds after each game |
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Staff Christmas party on or off business premises |
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Taking a client out to dinner while you are out of town on business in NZ |
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Taking a client out to dinner |
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Dinner for Sale Rep while out of town and no client present |
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Donating food to a Christmas Party in a children’s hospital |
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Employee’s salary package includes a taxable allowance for entertaining clients |
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Golf Club subscription for a busines owner paid by the company |
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Gym Memberships for team member (not owner) paid by the company |
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Providing a meal for a journalist while reviewing your business for their column |
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Providing morning or afternoon tea for your team |
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Sandwiches provided at a lunchtime meeting of supervisors |
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Sponsoring a local sports team |
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Taking a client out of dinner while you are out of town on business outside NZ. |
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Client Gifts Table |
50% Deductible |
100% Deductible |
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Bottle of wine or pack of beer |
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Meal voucher |
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Gift basket of food |
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Box of chocolates and biscuits |
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Christmas ham |
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Calendar |
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Tickets to a sports game |
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Movie tickets |
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Any other gifts not food or drink |