Can I deduct meals and entertainment as a self-employed Canadian?

Meals and entertainment expenses incurred for business purposes are deductible, but the CRA limits the deduction to **50% of the cost** (not the full amount). This applies to: - Business meals with clients, prospects, or business partners - Tickets to entertainment events for business purposes - Meals during business travel For example, if you take a client to lunch and the bill is C$120, you can deduct C$60 (50%) as a business expense. **100% deductible exceptions** (no 50% limit): - Meals provided at a company event available to all employees (up to 6 per year) - Meals included in a conference or seminar fee - Meals during long-haul truck transportation - Food and beverages specifically for resale (e.g., a restaurant) **GST/HST:** You can also claim an ITC on the GST/HST paid, but only on the 50% deductible portion. **Documentation required:** Date, purpose, names of people entertained, and the business reason. The CRA often scrutinises these expenses.

  • 50% deduction limit for most meals and entertainment expenses
  • Applies to client meals, event tickets, and travel meals
  • 100% deductible: all-employee events (≤6/year), conference-included meals
  • ITC claim limited to 50% deductible portion for GST/HST purposes
  • Keep detailed receipts: date, attendees, business purpose

Related Questions

  • What business expenses can self-employed Canadians deduct?
  • What are Input Tax Credits (ITCs) and how do I claim them?
  • How long do I need to keep records for the CRA?