In our FBT return we use the 50:50 method.
For income tax purposes, can we claim a 100% of entertainment expenses as a deduction
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Hi @grahamct
Employers can claim a deduction for the costs of providing most fringe benefits and the FBT that's payable.
When it comes to entertainment you should check if your expenses are deductible. Apart from a few exceptions, as a general rule, you aren't allowed an income tax deduction for expenses incurred in providing entertainment. If the costs are eligible, you can claim them along with the FBT.
Have a read through Chapter 14.15 of our FBT guide about income tax deductibility.
Cost of providing fringe benefits, if otherwise deductible under section 8-1:
Deduction amount is the amount of expense that is subject to FBT
If using 50/50 or 12-week register methods, the deduction is the amount of the expense calculated as subject to FBT
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