# TAX-05 — Meals and entertainment

**Flag: Current** — Verified against the live source. Safe to cite.

**Meals and entertainment:** 50% of the lesser of the amount incurred and a reasonable amount. Exceptions: businesses that regularly provide food or entertainment for compensation; costs billed to a client and shown on the bill; amounts included in an employee's income for a remote or special work location; **up to six all-staff events a year**; fundraising events mainly for a registered charity; and meals at a temporary construction work camp. Long-haul truck drivers 80%. Self-employed foot and bicycle couriers: $23/day flat

## Sources

- Line 8523 (primary): https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/sole-proprietorships-partnerships/report-business-income-expenses/completing-form-t2125/line-8523-meals-entertainment-allowable-part-only.html
- https://www.canada.ca/en/revenue-agency/services/forms-publications/publications/t4002/t4002-1.html (mirror): https://www.canada.ca/en/revenue-agency/services/forms-publications/publications/t4002/t4002-1.html

Jurisdiction: FED · Verified 2026-08-27 · Review: legislative