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
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 |