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New Zealand law explained for everyone

Income Tax Act 2007

Deductions - Entertainment expenditure

DD 6: Entertainment as business or for charitable purpose

You could also call this:

“Exceptions for entertainment expenses in business or charity”

You don’t have to worry about the limitation rule if you’re in the business of providing entertainment and you charge market value or deal with customers at arm’s length. This means if you run a business that offers any of the types of entertainment mentioned in section DD 2, you can deduct your expenses as usual.

Also, if you provide entertainment to the public for charitable reasons, you don’t need to follow the limitation rule. You can deduct all of your expenses for this kind of entertainment.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM1513821.

Topics:
Money and consumer rights > Taxes
Business > Industry rules
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“When you can claim full deductions for promoting your business”

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“You can claim all entertainment expenses incurred outside New Zealand”

Part D Deductions
Entertainment expenditure

DD 6Entertainment as business or for charitable purpose

  1. The limitation rule does not apply to a deduction for expenditure on entertainment that a person provides for market value or in an arm’s length transaction in the ordinary course of their business, if that business is to provide 1 or more of the forms of entertainment referred to in section DD 2.

  2. The limitation rule does not apply to a deduction for expenditure on entertainment that a person provides to members of the public for charitable purposes.

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