Business Accountants: Business Entertainment Expenses in New ZealandThe end of the year brings staff parties, client gifts, and end-of-year events. These moments build goodwill and reward hard work — but they also raise a common question for business (https://www.outsideaccounting.co.nz/) At Outside Accounting (https://www.outsideaccounting.co.nz/) Here's what every Wellington (https://www.outsideaccounting.co.nz/ Deductible vs. Non-Deductible Entertainment Expenses in NZ Under New Zealand tax (https://www.outsideaccounting.co.nz/) 1. Customer Gifts If you're giving gifts to clients or customers, steer clear of food and drink. Non-consumable items — think book vouchers, event tickets, or branded merchandise — are 100% deductible. These gifts promote your business and are treated differently from consumable entertainment under IRD rules. 2. Staff Christmas Parties and Events Planning a staff Christmas party? You can claim 50% of costs for food, drinks, venue hire, and entertainment in your GST and income tax returns. This 50% deductibility rule applies because the expense involves both business purpose and personal enjoyment. 3. Fringe Benefit Tax (FBT) on Entertainment Good news: you generally don't need to pay Fringe Benefit Tax on entertainment expenses that already fall under the 50% deductibility rule — unless staff are enjoying the benefit outside their normal work duties, such as personal travel unrelated to the business. 4. Staff Trips and Team Incentives A team trip — say, a reward trip to Australia for staff bonding — can be 100% deductible if it genuinely serves a business purpose. Experiences like this often carry more motivational value for your team than a straight cash bonus. https://www.outsideaccounting.co.nz End
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