Plain language law

New Zealand law explained for everyone

Income Tax Act 2007

Deductions - Entertainment expenditure

DD 1: Entertainment expenditure generally

You could also call this:

“Rules for claiming business-related entertainment expenses on your taxes”

When you make money, you might spend some on entertainment that’s both for fun and for your business. This law is about that kind of spending.

You can’t claim all of this entertainment spending when you do your taxes. You can only claim half of what you normally would. The law lists specific types of entertainment in section DD 2 that this rule applies to.

This rule that limits how much you can claim is called the “limitation rule”.

Even if other parts of the tax law would normally let you claim this spending, this rule takes priority and still limits you to only half.

This text is automatically generated. It might be out of date or be missing some parts. Find out more about how we do this.

View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM1513809.

Topics:
Money and consumer rights > Taxes
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DC 15: Some definitions, or

“Definitions for tax deductions that are no longer part of the law”

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DD 2: Limitation rule, or

“Rules for claiming entertainment expenses as tax deductions”

Part D Deductions
Entertainment expenditure

DD 1Entertainment expenditure generally

  1. This subpart applies when, in deriving income, a person incurs expenditure on entertainment that provides both a private and a business benefit.

  2. The person is denied a deduction for expenditure that they incur on the forms of entertainment set out in section DD 2, except for 50% of the amount that they would have been allowed in the absence of this subsection.

  3. Limitation rule means the rule described in subsection (2).

  4. This section overrides the general permission.

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