Entertainment​

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.

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