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Claiming Meals & Entertainment Expenses for Businesses


A business may pay for meals, beverages or entertainment that is incurred for the purpose of earning income from a business, but only 50% of these expenses are tax deductible to the business. It is important to remember that these expenses also have to be considered "reasonable amounts," for example; a $200 meal when picking up parts in town may not be considered reasonable by CRA and would be disallowed.

When purchasing a meal on a business trip, it would be helpful to write on the meal receipt the reason for the trip, to make easier proof of the business nature and to find other supporting documentation, should CRA audit your meal expense. This also helps our bookkeepers know if the meal was for a business or personal trip, and whether it can be claimed. It is also good to note that any meals purchased during a medical trip are unable to be an expense of the business, but instead are claimed on a medical expense or your personal tax return. These meals have a maximum deduction of $17.00 per meal for trips over 80 km away for services that are not provided closer to your home. It is not necessary to keep meal receipts for medical purpose, but you do need to keep proof that the trip was for a medical reason.