Entertainment/Recreation expenses for companies are categorized into 3 types:
 

100% Tax Deductible
Entertainment expenses for launching new company products with potential or existing company clients
Annual Dinner for employees
Gifts with company logo for clients
Free travel rewards for achieving sales targets by sales agents

50% Tax Deductible
Gifts to company clients without company logos
Sending congratulations gifts/gift baskets to clients for the opening of a new store
Entertaining existing suppliers
Sending holiday gift baskets to clients

100% Non-Tax Deductible
Cash donations for customer annual dinner
Wedding gifts for customers
Entertainment expenses for annual shareholders' meeting
Entertainment expenses for employees of affiliated companies

All terms are subject to LHDN's approval