Tax Relief Cyprus – on entertaining expenses

Entertaining expenses are treated as a business expense up to 1% of the turnover but to a maximum of €17,086.

Entertainment includes hospitality of any kind, such as cost of annual dinner parties of staff, clients, customers, office drinks and food, theatre tickets, provision of sports facilities to staff, made in connection with a business.

As an example,

if the turnover was €200,000 and the entertaining cost was €5000 then the amount allowed as an expense is the lower of 1% of €200,000=€2000 or €17086 i.e €2000