The 50% Meal Deductibility Rule: What Qualifies and What Does Not
In Canada, food and entertainment for business is generally only 50% deductible. The till slip from the restaurant does not finish the job.
What the receipt proves
The slip proves you paid, the date, the vendor, and the tax. It does not prove:
- Who sat at the table
- That it was a business discussion
- That it was not personal
We flag restaurant and food-delivery vendors with a 50% note so you do not claim the full amount by accident. You still confirm it was business.
What usually does not qualify
Personal lunches, family dinners, and groceries for the house are not a business meal because they happened on a workday. Hotel folios often mix room, meals, and personal charges — split them.
Rules have exceptions (certain remote-work meals, some events). Those are narrow. Do not assume you are in one.
This is not tax advice. When it is material, ask your accountant before you claim it.