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Deductible sporting events

Just thought I would let you know of some instances where Warriors (or any other sporting event) can be deductible for Income Tax and GST in your business. Warriors games would fall under the entertainment rules for tax purposes and there are times they can be 50% deductible or 100% deductible. I've popped examples of both below:

50% Deductible Warriors Expenses:

  • Attending the Warriors with clients or potential clients as a networking event, including the cost of game tickets and food and drink enjoyed at the event.

  • Providing a corporate box for clients and employees as a networking event, including food and drink.

    100% deductible Warriors Expenses:

  • Buying Warriors tickets for clients as a reward or similar BUT not attending the game with them

  • Buying Warriors tickets to giveaway as a promotion eg. on your social media BUT not attending the game yourself with the winners.

  • This one's a bit of a stretch but.....Shouting your staff to watch the Warriors in the Grand Final (is it our year?...) in Sydney AS a side entertainment while ALSO attending a business conference or similar in Sydney - your main reason for going to Sydney (Note: Just for further reference, this type of entertainment has to be held overseas AND this would just be deductible for Income Tax Purposes not GST, as no GST on overseas transactions).

    There's also some instances where tickets given to staff as a reward can be 100% deductible provided you don't spend more than $300 per quarter on the staff member AND the total cost of all gifts/prizes to ALL staff does not exceed $22,500 per annum in total. If you exceed these amounts you may fall into the FBT rules (basically more tax you need to pay) so best speak to your accountant if unsure

    #UpTheWahs  #BusinessEntertainment  #NZAccountant