Tax rules for gift giving - what are they? Can I claim them?

Posted by: Louise Pope
Date: 04 November 2014

In a recent blog we wrote about entertainment expenses, what they are, and what is claimable.

The Christmas season is also the time for gift giving. And as you would expect, there are certain rules around the level of deductibility that are explored in this article.

Client gifts

As a general rule, if you provide a gift to a client, depending on the type of gift, it may be completely deductible, or only 50% deductible.

If the gift is in the nature of "entertainment", such as food and wine, it will be 50% deductible.

Certain other types of gifts - for example a calendar, will be fully deductible.

Below is an easy reference table guide.

Our advice

The rules are complex, if in doubt about anything at all, as always, give us a call on 578 3386 or email us at, we're more than happy to help.


Louise Pope

Louise is a TvA director. Her areas of interest include all things tax, financial reporting, business advisory and mentoring. If you have any questions related to gift giving send an email to or contact Louise on 03 578 3386. 

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