Tag Archive for: Gifts of Food and Drink

Gifts of Food and Drink

Gifts of Food and Drink

Do you give your clients gifts including 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.

As qualified accountants, we can advise and help you determine the correct treatment of your expenses. You can contact us or visit the IRD website for further information.