How tax deductible are gifts to clients?

The season of giving is nearly upon us. If you're thinking about giving a gift to your clients, here's a reminder of the tax rules when giving these gifts.

When giving gifts to clients, remember that depending on the gift, some will be fully tax deductible while others will be only 50% deductible. The rule of thumb is that if they consist of food or drink, you can only claim 50% of the expense as a tax deduction. If you are giving out gift baskets or hampers and some of the contents are food or drink, but not all, the food or drink items are 50% deductible, but the other gift items are 100% deductible. When you come to claim the tax deduction, you will need to apportion the expense between the 100% deductible items and the 50% deductible items. And you will need to make a GST adjustment for expenses which are 50% deductible.

Examples of gifts which are 50% deductible include:

· Bottle of wine or six pack of beer

· Meal voucher

· Basket of gourmet food

· Box of chocolates/biscuits

· Christmas ham

Examples of gifts which are 100% deductible include:

· Calendars

· Book or gift vouchers

· Tickets to a rugby game (but not corporate box entertaining)

· Movie tickets

· Presents (but not food or drink)

If you’re unsure whether a planned gift is 50% or 100% tax deductible, gives us a call and we can advise you.

< Older Post

Newer Post >

5 benefits of working with a business advisor

18 April 2026

As your accountants can do so much more than just the bookkeeping. We’ve outlined 5 key areas where we can offer deeper, business-critical advice and support.

Cow with black and white markings standing in a green field with a farm in the background.

Tips for Moving Day

17 April 2026

It's that time again and Moving Day is upon. Moving Day' is a big day in the farming industry. To help you with a smooth transition here are some tips: Early preparation Make sure sharemilker or contract milker contracts are signed. Plan a farm inspection with relevant parties (farm owner, incoming and outgoing sharemilkers, farm manager, advisor). Recruit and finalise employment agreements for new farm staff. Communicate plans and dates with everyone involved. Contact your insurer and utility providers. Farm owner responsibilities Make sure employees leave the houses clean and tidy. Carry out house inspections for maintenance. Comply with healthy home standards. Confirm departure and arrival times with tenants. Consider drug testing, if needed. Animal movements and biosecurity Plan animal movements carefully. Clean and disinfect farm equipment and machinery. Minimise the risk of introducing exotic pests. About 5,000 farmers do this every year. Talking clearly and planning well makes this important farming tradition go smoothly.

Farm finance: What to know before (and after) you borrow

6 April 2026

Interest rates are always moving, but agricultural loans in New Zealand often come with tighter conditions and higher interest rates.