The Christmas tax quick guide

Here’s our quick guide to the tax impact of Christmas celebrations. The information is for GST registered businesses that are not using the 50-50 split method for meal entertainment.

 Exempt from FBT?  Tax deductible  GST credits
 Christmas party on employer   premises on a weekday
 Employees  Yes  No  No
 Associates of employee (spouses etc.)  If <$300 per head  If $300 or more per head  If $300 or more per   head
 Customers  N/A  No  No
 Christmas party (employer   premises on a weekend or external   venue)
 Employees  If <$300 per head  If $300 or more per   head  If $300 or more per   head
 Associates (spouses etc.)  If <$300 per head  If $300 or more per   head  If $300 or more per   head
 Customers  N/A  No  No
 Christmas gifts (assuming the gift   doesn’t involve entertainment)
 Employees  If <$300 per head  Yes  Yes
 Associates (spouses etc.)  If <$300 per head  Yes  Yes
 Customers  N/A  Yes  Yes
 Christmas lunch with customer at   external venue
 Employees  If <$300 per head  If $300 or more per   head  If $300 or more per   head
 Associates (spouses etc.)  If <$300 per head  If $300 or more per   head  If $300 or more per   head
 Customers  N/A  No  No

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