#51 How to Deduct Representation Expenses: Tips for Maintaining Business Relationships

💼 How can you strengthen your business relationships? Business lunches, gifts, and representation costs – we covered it all in our latest episode! Rezső is considering inviting a key client from a real estate company to a business lunch to solidify their relationship. But what are the rules in Denmark? Kati explains how business meals and gifts can be deducted, what percentage is tax-deductible, and what documentation is required. 🎙️ Join us in the latest episode of the "Business Lessons in Denmark" podcast, where we break down everything you need to know about representation costs! 🚀 Chapters: 00:00 - Intro 00:33 - Greeting 01:20 - Rezső's dilemma: business lunch with an important client 02:49 - Deductibility rate 04:20 - Documentation 05:30 - Business gifting 07:45 - Summary Key takeaways from the episode: 📌 Only 25% of business lunch expenses are tax-deductible. 📌 When it comes to gifts, if they are promotional and distributed widely (like branded pens), the costs are fully deductible. For more expensive gifts, only 25% can be deducted, and VAT cannot be reclaimed. 📌 Proper documentation is needed for representation costs: invoices, a list of attendees, and the purpose of the meeting or gift. ​​▶️ Useful links for the episode: Fradrag for udgifter til repræsentation: https://info.skat.dk/data.aspx?oid=2083501 🦉 Cool Accounts ApS Get the most out of your business! Leave the bookkeeping and tax matters to a specialist! https://accounts.cool/en/