December 2023

December 2023

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 deductibleGST credits
Christmas party on employer premises on
a weekday
EmployeesYesNoNo
Associates of employee (spouses etc.)If <$300 per headIf $300 or more per headIf $300 or more per head
CustomersN/ANoNo
Christmas party (employer premises on a
weekend or external venue)
EmployeesIf <$300 per headIf $300 or more per headIf $300 or more per head
Associates (spouses etc.)If <$300 per headIf $300 or more per headIf $300 or more per head
CustomersN/ANoNo
Christmas gifts (assuming the gift doesn’t
involve entertainment)
EmployeesIf <$300 per headYesYes
Associates (spouses etc.)If <$300 per headYesYes
CustomersN/AYesYes
Christmas lunch with customer at external
venue
EmployeesIf <$300 per headIf $300 or more per headIf $300 or more per head
Associates (spouses etc.)If <$300 per headIf $300 or more per headIf $300 or more per head
CustomersN/ANoNo
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