Tax Treatment for Entertainment Expenses | What Is Tax Deductible?
Remember the nice team lunch to celebrate the company’s milestone? 🎉 Oh, and the fancy dinner with your biggest client? 🍽️ Not to forget, the festive hampers for business partners and loyal clients 🎁
You must be wondering if all those business entertainment expenses qualify for tax deduction 🤔 Well, it actually depends on the purpose of the expenses and who benefits from it. That explains why some expenses are 100% deductible, some only 50% deductible, and the rest are nondeductible.
Entertainment is defined in the Income Tax Act as (a) the provision of food, drink, recreation or hospitality of any kind and (b) the provision of accommodation or travel in connection with or for the purpose of facilitating entertainment of the kind mentioned in (a); by a person or an employee in connection with a trade or business carried out by that person.
Let us walk you through the different entertainment expenses your business can take advantage of to save big on tax return 💰
If you need a bookkeeper or tax expert to guide you through this, reach out to us via https://wa.me/60122192492 📲