Hospitality Costs More Knowledge.

The focus of business entertainment planning is how to pay higher social intercourse fees, and how to raise the limit of payment for social intercourse fees, and avoid exceeding the limit standard so as to increase the cost of branch payment and achieve the effect of tax saving.

The social intercourse fee refers to the expenses incurred by taxpayers for production and operation and business management.

The tax law stipulates that the business entertainment expenses directly related to the business operation of taxpayers can be deducted within the proportion of the following stipulations: the net annual sales (business) income of 15 million yuan and below shall not exceed 5 percent of the sales (business) net income; the annual sales (business) income of more than 15 million yuan shall not exceed 3 parts of the sales volume.

If a taxpayer requests to provide proof data, he or she shall provide enough valid certificates or materials that can prove the authenticity of the business, and those that cannot be provided shall not be deducted before tax.

There are mainly several ways to plan the business entertainment expenses of the business. The following are the ways to change the business form: the enterprises that operate on behalf of the company are only allowed to use the commission income to calculate the entertainment fee limits. Because the base of the commission income is small, the business limit of their business will be small.

If it is changed to the mode of self purchase and sale, the purchase and sales volume can be listed as the basis for calculating the business entertainment cost limit. Because of the larger purchase and sale basis, the business limit for the business to be paid is also large.

In order to change the payment method, enterprises should pay their business fees according to their business needs.

If the enterprise pays a certain fee to the distributor through the independent intermediary agency and obtains the invoice issued by the distributor according to the proportion of the distribution amount, the expenditure can be paid in the form of commission fees, so as to achieve the tax saving effect.

The tax law stipulates that the Commission of a taxpayer shall meet the following requirements, and shall be included in the selling expenses: there are legitimate and authentic credentials; the object of payment must be an independent taxpayer or individual who has the right to engage in intermediary services (the object of payment does not include the employees of the enterprise); the commission paid to the individual shall not exceed 5 per thousand of the service amount unless otherwise stipulated.

In addition to obtaining the relevant legal certificates, we should also keep the information on the business related expenditure of the business, so as not to be eliminated by the tax inspection authorities.

During the period of preparation, the communication fees paid by enterprises during the preparation period should be included in the start-up cost and capitalized, and amortized according to the regulations, so the total amount of payment will not be restricted by the business entertainment quota.

Enterprises can make use of this stipulation to plan.

If the business fee of the business is adjusted in advance, if it exceeds the allowable limit, it should be adjusted and deducted before the declaration of enterprise income tax, so as to avoid being overlooked by the tax inspection authorities and the late fee should be added.