• Santa picA fake Christmas tree used to decorate the office can be fully written off if it costs less than $500, or can be depreciated over 3 years if it costs more than $500
  • Your staff Christmas party is 50% deductible, however any law infringement notices incurred by employees as a result of said party and paid for by the business are non-deductible
  • Gifts given to clients and suppliers are 100% deductible
  • Any beer, milk, cookies and carrots left out on Christmas Eve will be non-deductible entertainment expenditure
  • For tax purposes, Santa must value his reindeer using either the Herd Scheme or National Standard Cost method
  • Provided the IRD classifies Santa’s suit as ‘distinctive work clothing’ and not clothing that would normally be worn privately he will be able to claim the cost of the suit as a deduction
  • Santa should maintain a log book to determine the business use of his sleigh
  • Should Santa be required to employ extra staff to help him through his busy time and they are required to work on Christmas day he will have to pay them time and a half and give them a day in lieu.

Merry Christmas!