Do you give your clients gifts of Food and Drink?
Did you know that these types of gifts are only 50% deductible?
As per the IRD, gifts of food and drink that will provide a private benefit to the recipient and a business benefit to the taxpayer are only 50% deductible.
A web design company sends a goody box of cakes and biscuits to their client each time a website goes live. They are only permitted to deduct 50% of the cost of the goody box as it is provided away from their premises in the form of food.
If they were to provide a gift containing mixed items such as candles and hand soap, the cost of these items are fully deductible but the food portion is still only 50% deductible.