Representation gifts – representation by giving a gift – to an expenditure for representation gift shall be deemed to be deductible, it must according to the case RÅ 1982 1:9 there exist an immediate connection with the business (initiate or maintain a business relationship).
As an example of representations gifts that have a direct connection with the activities can be mentioned that a supplier companies are courting a client company with a Flower paper or bokgåva on the grounds that the client company opens a new branch or celebrates an anniversary. Another example is when a taxpayer rather than to offer meal in a restaurant in connection with the dealership to submit a chokladkartong, and Fruit Basket or similar.
Examples of deductible entertainment gifts:
– Flower paper (bouquet of flowers, flowers)
– bokgåva
– chokladkartong
– Fruit Basket
Deductible amounts
Deduction for business entertainment gift should be admitted with reasonable amount, maximum 180 kr/180 SEK plus VAT per person.
Examples of non-deductible entertainment gifts:
– wreaths and flowers or in connection with the death of the client companies (corresponding to the employee's death may be deducted as a staff).
– Representation gift to business relations weekends (Christmas present for example) or personal celebrations
Deduction for business entertainment gift to business relations weekends or personal celebrations should not be allowed. The same applies to expenses for wreaths or flowers in connection with deaths. Such hospitality gifts may generally be considered to have an excessive element of personal generosity for the deduction to be allowed.
Learn more about representation and the amounts that apply to deductible representation the income year in!