Such costs can be classified on the one hand as publicity costs if the publicity character can be demonstrated (100% deductible) or on the other hand as reception costs (50% deductible). In the past, the Minister of Justice had already indicated that if costs were incurred for events with a publicity purpose (e.g. an open day), these would be 100% deductible publicity costs. However, the Court of Cassation has recently ruled differently on this matter, stating that such costs (e.g. catering costs) still qualify as reception costs that are only half deductible.
However, in the context of the COVID-19 pandemic, the event sector has been severely affected and for this reason the legislator now allows 100% deductibility of reception costs incurred between 8 June 2020 and 31 December 2020.
The legislator also makes it clear that the costs of business gifts are not covered by this temporary measure.
We base our advice on current legislation, interpretations and legal doctrine. This does not prevent the administration from being able to challenge it or to change existing interpretations.