Entertainment expenses are deductible provided they relate to a business activity. The most common forms of entertainment expenses are only 50% deductible.
These include:
- Recreational events, e.g., corporate boxes
- Holiday accommodation
- The hiring of yachts to hold business lunches and/or dinners
- Any food and beverages supplied at the above venues as well as at the business premises
Forms of entertainment that are 100% deductible include:
- Food and beverages consumed on business trips, conferences or educational courses
- Entertainment outside of New Zealand
- Entertainment from promotional events and trade displays
- Benefits that are fringe benefits
Entertainment costs can include incidental costs such as the hiring of catering staff or providing music.
