Important Notice: Our web hosting provider recently started charging us for additional visits, which was unexpected. In response, we're seeking donations. Depending on the situation, we may explore different monetization options for our Community and Expert Contributors. It's crucial to provide more returns for their expertise and offer more Expert Validated Answers or AI Validated Answers. Learn more about our hosting issue here.
Generally entertainment allowances qualify as tax-free only if they are paid to employees who are required to entertain actual or prospective customers or clients in the normal course of their duties. The level should be set having regard to the employees status as well as the persons he is likely to entertain and the frequency.
