--- title: Meals and Entertainment Business Expenses description: Maximize your business tax deductions by understanding the CRA's rules on meals and entertainment expenses, including what can be claimed, how much, and record-keeping tips. image: https://toroaccounting.ca/hubfs/Meals-1.jpeg --- [Skip to content](https://toroaccounting.ca/blog/meals-and-entertainment-business-expenses#main-content) - [English](https://toroaccounting.ca/blog/meals-and-entertainment-business-expenses) - [Spanish](https://toroaccounting.ca/es/blog/meals-and-entertainment-business-expenses) English Show submenu for translations [![Toro Financial Inc. dba Toro Accounting](https://toroaccounting.ca/hs-fs/hubfs/Logo-Square%20(500%20x%20200%20px)-1.png?width=450&height=150&name=Logo-Square%20(500%20x%20200%20px)-1.png)](https://toroaccounting.ca/en?hsLang=en) - [Home](https://toroaccounting.ca/en/) - [Taxes](https://toroaccounting.ca/en/tax-filing-services) Show submenu for Taxes - [1st Tax Filing](https://toroaccounting.ca/en/steps-for-filing-t1) - [Bookkeeping](https://toroaccounting.ca/en/bookkeeping) - [Business Plans](https://toroaccounting.ca/en/create-my-business-plan) - [Blog](https://toroaccounting.ca/blog) Open main navigation Close main navigation - [Home](https://toroaccounting.ca/en/) - [Taxes](https://toroaccounting.ca/en/tax-filing-services) Show submenu for Taxes - [1st Tax Filing](https://toroaccounting.ca/en/steps-for-filing-t1) - [Bookkeeping](https://toroaccounting.ca/en/bookkeeping) - [Business Plans](https://toroaccounting.ca/en/create-my-business-plan) - [Blog](https://toroaccounting.ca/blog) - - [English](https://toroaccounting.ca/blog/meals-and-entertainment-business-expenses) - [Spanish](https://toroaccounting.ca/es/blog/meals-and-entertainment-business-expenses) English Show submenu for translations - [Book a Free Consultation](https://toroaccounting.ca/en/book-consultation) [Book a Free Consultation](https://toroaccounting.ca/en/book-consultation?hsLang=en) Sep 14, 2024, 2:25:11 PM # Meals and Entertainment Business Expenses [Camilo Toro](https://toroaccounting.ca/blog/author/camilo-toro) Share: [facebook-f icon](http://www.facebook.com/share.php?u=https://toroaccounting.ca/blog/meals-and-entertainment-business-expenses) [linkedin-in icon](http://www.linkedin.com/shareArticle?mini=true&url=https://toroaccounting.ca/blog/meals-and-entertainment-business-expenses) [Twitter icon](https://twitter.com/intent/tweet?url=https://toroaccounting.ca/blog/meals-and-entertainment-business-expenses) [pinterest-p icon](http://pinterest.com/pin/create/link/?url=https://toroaccounting.ca/blog/meals-and-entertainment-business-expenses) [envelope icon](mailto:?body=https://toroaccounting.ca/blog/meals-and-entertainment-business-expenses) In Canada, meals and entertainment expenses are common for small business owners and self-employed individuals, especially when meeting clients, hosting events, or conducting business over meals. However, the Canada Revenue Agency (CRA) has specific rules regarding what can be claimed, how much can be deducted, and what records should be kept. Properly understanding these regulations can help you maximize your deductions while avoiding any potential issues with the CRA. ![Meals-1](https://toroaccounting.ca/hs-fs/hubfs/Meals-1.jpeg?width=799&height=567&name=Meals-1.jpeg) #### **1. Deductible Meals and Entertainment Expenses** Not all meal and entertainment expenses are fully deductible. In general, only **50%** of the cost of meals and entertainment can be deducted, and this applies to most business-related expenses. Here are some examples of eligible expenses: - Meals and drinks purchased during business meetings with clients or prospects. - Meals consumed during business trips or conferences. - Entertainment expenses, such as attending sporting events, concerts, or other shows with clients or business partners. The **50% deduction limit** applies regardless of whether the business owner or the client consumes the meal. #### **2. Special Cases Where 100% Deduction is Allowed** While the 50% rule is common, there are some specific situations where you can deduct **100%** of the meal or entertainment expenses: - Meals provided at a **fundraising event** for a registered charity. - Meals offered at **special events** (e.g., a holiday party) to **all employees** of the business. - Meals provided during **remote worksite operations**, such as a job site located away from your business location where meals are necessary for work. #### **3. Keeping Records** To support your claims, it’s essential to maintain accurate records of your meals and entertainment expenses. The CRA requires the following information to be documented: - **Date of the event** or meal. - **Location** where the expense was incurred. - **Names of individuals** involved (e.g., clients, employees). - **Purpose** of the meal or entertainment (e.g., discussing a contract or business partnership). - **Receipts** that clearly show the total amount, the restaurant’s name, and any taxes included. These records should be kept for **six years** in case the CRA requests them during an audit or review. #### **4. Alcoholic Beverages** Alcohol is considered part of meals and entertainment expenses, and the 50% rule still applies. However, you should be cautious when claiming alcoholic beverages. Excessive or frequent claims of alcohol-related expenses may draw CRA scrutiny. #### **5. What Cannot Be Claimed** There are expenses that **cannot** be claimed as meals and entertainment. For example: - Personal meals or entertainment that are not directly related to your business. - Meals consumed with family members unless there is a clear business purpose. - The portion of any expense that is considered lavish or extravagant beyond what would be deemed reasonable for your business. #### **6. Tips for Small Business Owners and Self-Employed Individuals** Here are some best practices to follow: - **Separate personal and business expenses**: Always distinguish between personal and business-related meal and entertainment expenses to avoid complications with the CRA. - **Use a business credit card**: Pay for business meals and entertainment using a separate business account or credit card to maintain clean records. - **Include notes with receipts**: Jot down the purpose of the meal and who attended directly on the receipt to make record-keeping easier. #### **7. Non-Deductible Expenses** Certain meal and entertainment expenses are **not deductible at all**. For instance: - Club membership dues, such as those for gyms or golf clubs, are not deductible, even if used for business. - Costs incurred for the sole purpose of entertaining yourself or your family. #### **Conclusion** Understanding the CRA’s rules for meals and entertainment expenses can help you avoid mistakes and maximize your business tax deductions. For most business owners and the self-employed, only 50% of these expenses are deductible, and it's crucial to keep detailed records to support your claims. When in doubt, consulting with a tax professional or accountant can ensure you're following the rules and optimizing your deductions.  [Schedule a Free Call](https://toroaccounting.ca/en/book-a-free-call?hsLang=en)   [Corporation](https://toroaccounting.ca/blog/tag/corporation), [Self-Employed](https://toroaccounting.ca/blog/tag/self-employed) ## Related posts [![](https://toroaccounting.ca/hs-fs/hubfs/Untitled%20design%20(6)-2.png?height=200&name=Untitled%20design%20(6)-2.png)](https://toroaccounting.ca/blog/child-care-expenses-in-canada?hsLang=en) [CRA](https://toroaccounting.ca/blog/tag/cra), [Tax Credits](https://toroaccounting.ca/blog/tag/tax-credits), [Deductions](https://toroaccounting.ca/blog/tag/deductions) ## [👶 Child Care Expenses in Canada](https://toroaccounting.ca/blog/child-care-expenses-in-canada?hsLang=en) [Camilo Toro](https://toroaccounting.ca/blog/author/camilo-toro) Feb 22, 2026, 4:51:18 PM What Parents Need to Know for Tax Season If you’re a working parent in Canada, child care can be... 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