NZ entertainment expenses can be a tricky area for business owners to navigate. What’s fully deductible? What’s only 50%? And what triggers Fringe Benefit Tax (FBT)?
If you’re not sure how to categorise costs like client lunches or staff events, you’re not alone. In this guide, we break down the essentials so you can stay compliant, reduce tax stress, and claim what you’re entitled to.
What NZ Entertainment Expenses Are Fully Deductible?
The IRD allows full deductions for entertainment that’s strictly business-related, such as:
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Meals while travelling for work (not shared with clients)
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Food and drink at conferences or training sessions (4+ hours)
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Light refreshments at internal meetings (e.g. sandwiches or coffee)
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Promotional events open to the public
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Meals provided to critics or influencers for review
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Business-related entertainment outside New Zealand
What’s Only 50% Deductible?
If there’s a mix of personal and business benefit, the IRD allows you to deduct only 50%. Examples include:
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Client and team meals or drinks
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Social events like staff Christmas parties
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Food or drink gifts (e.g. wine or hampers)
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Use of baches, boats, or corporate boxes
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Event extras like venue hire or catering
100% Deductible but FBT Applies
When entertainment is a staff perk (like a restaurant voucher or weekend away), it’s fully deductible—but Fringe Benefit Tax may apply. Check with your advisor to avoid surprises.
📥 Want the full checklist?
Download the full PDF guide here.
If you have any questions feel free to contact us.
