Can I Claim Client Entertainment (Kundenbewirtung) as a Business Expense in Switzerland?
50% deductible for client meals and entertainment under Swiss tax law. The 50% restriction aligns Switzerland with many other jurisdictions. Business meals between directors only (no client present) may be disallowed entirely.
What Federal Tax Administration (ESTV/FTA) says
Under Art. 27 DBG and cantonal equivalents, client meals and entertainment expenses are deductible to 50% of their actual cost, provided the business purpose is documented. A contemporaneous record of who was entertained and the business purpose is required. The ESTV applies a general 50% disallowance on meal entertainment to reflect the personal benefit element. Excessive or luxury entertainment may be questioned entirely.
When you can claim
- Client lunches or dinners with documented business purpose and guest names — 50% deductible
- Drinks or refreshments at business meetings with clients or suppliers
- Client event tickets (concerts, sports) with documented business purpose — 50% deductible
- Business meal expenses while travelling away from base (see business travel entry for full deductibility rules when no client present)
When you cannot claim
- The non-deductible 50% portion of all entertainment costs
- Entertainment with no identifiable business purpose
- Pure staff social events or company parties (these have separate rules — see staff events)
- Personal meal costs at regular workplace (no entertainment element)
Good to know
Pro tip: Keep a contemporaneous log of every business meal: date, restaurant, amount, names of guests, and business purpose. The ESTV and cantonal authorities have discretion to disallow entirely if records are absent. Some Swiss fiduciaries recommend the log be kept in your accounting software (like AccountsOS) at the time of expense, not reconstructed later.
Related expenses
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