Popping the Bubbly with your Clients this Christmas?

December 18, 2016

The Inland Revenue has changed the rules regarding the deductibility of food and drink purchased to gift to clients and suppliers.

Food and drink purchased as a gift for clients or suppliers will now be subject to the 50% entertainment expenditure rule. This is due to food and drink being deemed as ‘entertainment’ in nature.

 

You may find the following table useful to determine the deductibility of your various client gifts:

Client Gift
50% deductible
100% deductible

Bottle of wine or six pack of beer

Yes
 

Meal voucher

Yes
 

Basket of gourmet food

Yes
 

Box of chocolates/biscuits

Yes
 

Christmas ham

Yes
 

Calendar

 
Yes

Book or gift voucher

 
Yes

Tickets to a rugby game

 
Yes

Movie tickets

 
Yes

Presents (not food or drink)

 
Yes

 

Article Author

Maxine Stokes
Accountant
mstokes@nexiachch.co.nz 

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