Gifts to Clients/Customers/Contractors/Suppliers

No FBT is payable, irrespective of the type of gift and irrespective of cost.  However, where a gift constitutes entertainment, no GST or tax deduction can be claimed.  Thus, at least from a tax standpoint, it’s better to provide non-entertainment gifts to clients (Christmas hamper, bottles of alcohol, gift vouchers, pen sets) and, in doing so, enjoy a tax deduction and GST credits.