{"id":825,"date":"2016-09-30T10:59:25","date_gmt":"2016-09-29T21:59:25","guid":{"rendered":"https:\/\/ontrackbookkeeping.co.nz\/?p=825"},"modified":"2021-01-19T23:16:06","modified_gmt":"2021-01-19T10:16:06","slug":"entertainment","status":"publish","type":"post","link":"https:\/\/ontrackbookkeeping.co.nz\/entertainment\/","title":{"rendered":"Entertainment – What can I claim?"},"content":{"rendered":"

\"Entertainment<\/a>
\nThe entertainment rules\u00a0can be rather confusing right? \u00a0Some things are deductible, some are 50% and some you cant claim at all. \u00a0Some you can but then FBT kicks in. \u00a0Goodness me!
\nSo I thought I would collate some info that might just help make things a little clearer..<\/p>\n

Entertainment Expenses and their Income tax and\u00a0GST Treatment<\/strong><\/h4>\n
General Rule<\/b><\/span><\/h6>\n

If you provide entertainment for your team, clients or any other business contact,\u00a0some of your business entertainment expenses are tax deductible.<\/p>\n

Fully Deductible Expenses<\/b><\/span><\/h6>\n

The following is a list of the entertainment expenses that are fully deductible:
\n1. Meals while travelling on business<\/strong>
\nThe cost of a meal while travelling on business is fully deductible as long as there are no business contacts present.
\n2. Conferences<\/strong>
\nThe cost of food and drink at a conference or business course, which continues for four hours or more, is fully deductible.
\n3. Meal allowances<\/strong>
\nA tax-free meal allowance paid by an employer to an employee working overtime
\nis fully deductible.
\n4. Executive dining facilities<\/strong>
\nThe cost of a light meal provided to employees in an area reserved for senior management is fully deductible when the meal is provided during the course of
\nthe employees\u2019 normal duties.
\n5. Morning and afternoon teas<\/strong>
\nMorning and afternoon teas in an executive dining facility or at a conference are
\nfully deductible.
\n6. Promotions open to the public and trade display<\/strong>
\nEntertainment provided by a business as part of a function open to the public, or at trade displays to advertise the business, are fully deductible.
\nFor example: The costs of crockery\/glassware hire, food, room hire, equipment
\n7. Off-shore entertainment<\/strong>
\nEntertainment enjoyed outside New Zealand is fully deductible.
\n8. Monetary sponsorship<\/strong>
\nThe cost of sponsoring entertainment is fully deductible where the sponsorship is principally for promotion or advertising to the public.
\n9. Entertainment provided for market value<\/strong>
\nProviding entertainment for market value is fully deductible.
\nFor example: the cost incurred by a restaurant in providing meals to patrons.
\n10. Samples<\/strong>
\nThe cost of providing samples for advertising or promotional purposes is fully deductible.
\n11. Charitable entertainment<\/strong>
\nEntertainment provided to members of the public for charitable purposes is fully deductible.
\nFor example: A business donates food to a Christmas party in a children\u2019s
\nhospital.
\n12. Reviewers<\/strong>
\nThe cost of providing entertainment to a person to review your business for a paper, magazine, book or other medium, is fully deductible.
\n13. Licensed premises operators<\/strong>
\nCosts incurred by a licensed premises operator in providing a special offer are
\nfully deductible.
\nFor example: Happy hour of cheap drinks or two-for-one price meals.<\/p>\n

50% deductible Entertainment Expenses<\/b><\/span><\/h6>\n

The following is a list of the four types of entertainment where deductibility is limited\u00a0to 50%:
\n\u00b7 The cost of corporate boxes, corporate marques or tents
\n\u00b7 The cost of accommodation in a holiday home or time-share apartment
\n\u00b7 The cost of hiring a pleasure craft
\n\u00b7 The cost of food and beverages enjoyed in any of the three locations listed\u00a0above, or food and beverages enjoyed on\/off the business premises for a\u00a0social event<\/p>\n

This table is great one pager infographic to help with this. \u00a0Entertainment Expenses Table<\/a><\/p>\n

Goods and services tax (GST)<\/b><\/strong><\/span><\/h5>\n

You can claim the full GST portion on all entertainment expenses you have incurred\u00a0throughout the year. If the entertainment expenses are only 50% deductible, you\u00a0need to make an adjustment once a year for the 50% non-deductible portion.
\nThe GST adjustment is 3\/23\u00a0of the non-deductible entertainment expenses,\u00a0exclusive of GST. This needs to be returned in the GST return in the period your\u00a0income tax return is filed or due to be filed. \u00a0Many clients find it easier to claim the correct portion as they go, throughout the\u00a0year.<\/p>\n

Fringe benefit tax (FBT)<\/b><\/strong><\/span><\/h5>\n

If employees (including shareholder-employees) can enjoy an entertainment benefit\u00a0at their discretion and outside their employment duties, this benefit will be subject to\u00a0FBT.
\nAny entertainment expenses that come under the 50% deductibility rules are not<\/strong>\u00a0liable for FBT.<\/p>\n

Our Advice<\/b><\/strong><\/span><\/h5>\n

The rules are complex. For big ticket items, get professional\u00a0advice.\u00a0The full Entertainment guide on the IRD website can be found here<\/a><\/p>\n

Thanks for reading.
\nDiCE <3<\/p>\n","protected":false},"excerpt":{"rendered":"

The entertainment rules\u00a0can be rather confusing right? \u00a0Some things are deductible, some are 50% and some you cant claim at all. \u00a0Some you can but then FBT kicks in. \u00a0Goodness me! So I thought I would collate some info that might just help make things a little clearer.. Entertainment Expenses and their Income tax and\u00a0GST … Continued<\/a><\/p>\n","protected":false},"author":12,"featured_media":7524,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":false,"jetpack_social_options":{"image_generator_settings":{"template":"highway","enabled":false}}},"categories":[203],"tags":[],"jetpack_publicize_connections":[],"acf":[],"yoast_head":"\nEntertainment - What can I claim? - Ontrack Bookkeeping Ltd<\/title>\n<meta name=\"description\" content=\"The entertainment rules can be rather confusing right? 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