Japan Entertainment Expense Deduction

Estimate deductible and non-deductible portions for outside entertainment costs based on capital size.

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Calculation basis and official references

Reviewed on:

Formula basis

For capital up to JPY 100 million, deductible expense is the greater of the prorated JPY 8 million cap and 50% of outside dining, limited to total expense. Larger companies receive only the 50% outside-dining amount.

Calculation method

This calculator compares Japan’s prorated JPY 8 million small-company entertainment allowance with the 50% outside-dining rule.

Exclusions and checks required

  • Exclusions for very large companies, controlled relationships, and tax-group rules are not represented by the two capital classes.
  • The calculator does not classify per-person dining, internal meals, meeting expense, or employee welfare.

Example input:：Small company with JPY 5 million outside dining and JPY 4 million other entertainment

capitalClass
Under 100 million JPY
outsideDiningYen
5000000
otherEntertainmentYen
4000000
fiscalMonths
12

This assumes every entered amount has already been correctly classified as entertainment expense or qualifying outside dining.

Official references

FAQ

Who is this calculator for? Japan Entertainment Expense Deduction

Estimate deductible and non-deductible portions for outside entertainment costs based on capital size.

What values should I enter?

Applies to: Japan Donations and Corporate Tax

How should I interpret this estimate?

This calculator compares Japan’s prorated JPY 8 million small-company entertainment allowance with the 50% outside-dining rule.

How to use

  1. Enter your input values and press Calculate.
  2. Review the result and compare it with expected context.
  3. For capital up to JPY 100 million, deductible expense is the greater of the prorated JPY 8 million cap and 50% of outside dining, limited to total expense. Larger companies receive only the 50% outside-dining amount.

Official references