Can I Claim Repræsentation (Business Entertainment) as a Business Expense in Denmark?
Only 25% deductible for income tax purposes — one of the most restrictive entertainment deduction rules in Europe. Documentation of business purpose and attendees is mandatory. Internal staff meals and social events are fully deductible. Moms on restaurant bills is also non-reclaimable.
What Skattestyrelsen (Danish Tax Agency) says
Ligningsloven §8, stk.4: business entertainment (repræsentation) with external parties is deductible at 25% only. This covers restaurant meals, gifts to business contacts (up to DKK 100 deductible at 25%), event tickets, and similar. SKAT requires documentation: date, names and companies of attendees, business purpose.
When you can claim
- Client dinner where 25% of the invoice is deductible (document: date, names, companies, and business purpose)
- Business lunches with prospects — 25% deductible with proper records
- Corporate gifts to clients (under DKK 100 for items like calendars/chocolates) — 25% deductible
- Annual Christmas party or team event (fuldt fradrag for medarbejdere — internal staff): fully deductible
- Employee meals when working overtime or travelling (dagdiæter): fully deductible at SKAT standard rates
When you cannot claim
- 75% of any client entertainment bill — always
- Entertainment without any documentation of who attended and why
- Gifts above DKK 100 in value to clients
- Moms on restaurant bills where clients are present (no input moms reclaim)
Good to know
Pro tip: Keep a simple digital log for every entertainment expense: save the receipt, note the names and companies of guests, and write 1-2 sentences about the business purpose. A photo with a note added immediately is sufficient. Without this, SKAT will disallow the entire 25% on audit.
Important: The 25% rule is strict — there is no category of client entertainment where you get more than 25% for income tax. Moms on client entertainment (restaurant meals) is additionally non-reclaimable, making the effective cost to the business very high. Consider whether in-office hospitality (where you control costs and can deduct 25%) is more efficient than restaurants.
Related expenses
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