Entertainment Expense which Qualifies for a 100% NOT Deduction 


a) Entertainment given to a potential customer

- A real property sales agent discuss the purchase of a house with his potential customer at a restaurant. The agent incurred the whole cost of lunch for himself and his potential customer. The expense incurred on lunch provided is an entertainment expense. However, deduction is allowed in relation to the entertainment provided to a potential customer because it is not wholly and exclusively incurred in the production of gross income.

b) Wedding gifts to customer

- XYZ Sdn Bhd gave its customer a microwave oven as a wedding gift.

- The expense incurred on the wedding gift is an entertainment expense but is not allowed a deduction because it is not wholly and exclusively incurred in the production of gross income.

100% 不可扣除的娱乐费用

1. 给予潜在客户的娱乐费用

• 房地产销售代理商与他的潜在客户在餐厅讨论如何购买房屋。代理商为自己和潜在客户支付了午餐的全部费用。虽然提供的午餐费用是娱乐费用，但是由于提供给潜在客户的娱乐活动并非全部和专有地用于产生收入，因此不允许扣除。

2. 给客户的结婚礼物

XYZ Sdn Bhd 向其客户提供了微波炉作为结婚礼物。虽然结婚礼物所产生的费用是一种娱乐费用。但不能扣除，因为它不是全部和专门用于产生收入的。