Corporate Gifts: 100% Tax Deductible Until 31/2020?

The hospitality sector has had a tough time in recent months. Even after the lockdown, the extreme crowds failed to materialise due to the COVID measures. The government is therefore trying to support the hospitality sector with some tax benefits, which you as a company can also take advantage of.

If your company is still organising an event or reception, you can make use of this support measure. Reception and hospitality costs are 100% tax deductible until 31 December 2020. The costs must be related to the period from 8 June 2020 to 31 December 2020. Reception costs, in the broad sense, are seen as costs that a company incurs with a view to its relationship with clients, suppliers, partners… The costs relate to the costs of, among other things, a caterer, drinks, food, furnishing of the space, decorations such as flowers… In this way, companies are encouraged by the government to organise an event or reception in 2020.

As for corporate gifts for clients, employees or partners, this measure does not apply. Corporate gifts remain only 50% tax deductible.