Enterprises Should Pay Attention To Maximize The Deduction Of Business Entertainment Expenses.

Many enterprises often deal with the calculation of the pre tax deduction limit of business entertainment in the simplest way. For example, if the sales revenue of accounting statements is multiplied by 5 per thousand, compared with the 60% of the business entertainment expenses, the small person will be taken as the pre tax deduction limit, which not only exposes the relevant enterprises but does not understand and grasp it.

The relevant regulations also make enterprises unable to make full use of the tax policy.

The author analyzes the problem of how to correctly determine the base of the pre tax deduction for business entertainment from two aspects.

First, attention should be paid to the increase in the number of accrued bases.

Under normal circumstances, the size of sales revenue often determines whether the business entertainment expenses can be deducted before tax. The higher the income is, the more likely the business can be deducted before tax.

But the problem is, as the base of calculating business entertainment expenses.

It is often not only the sales revenue reflected in the accounting statements, but also the necessary adjustment, and the result of this adjustment will often be greater than the income reflected in the accounting statements. Therefore, the business must grasp the relevant provisions to ensure the full use of the tax policy.

There are often three cases that need to be adjusted.

First, according to the provisions of the state tax letter [2009] 202, "enterprises are calculating business.

The amount of sales (business) income should include the amount of sales (business) income stipulated in the twenty-fifth provision of the implementing regulations.

The two is according to the 31 of the national tax code [2009]: "the income earned by the enterprise through the formal signing of the real estate sales contract or the real estate pre-sale contract shall be recognized as the realization of sales revenue."

Three, it is stipulated in regulation 79 of the state tax [2010]: "for enterprises engaged in equity investment business (including group headquarters, venture capital enterprises, etc.), dividends, dividends and share pfer income from the invested enterprises can be calculated according to the prescribed proportion of the business deduction fee.

The above three situations should be regarded as the base of calculating the business entertainment expenses.

Two, although the sales revenue of the enterprise is zero, it can still deduct business entertainment expenses.

According to the announcement of the State Administration of Taxation on 2012, fifth, fifteenth, "the business entertainment expenses related to the preparatory activities during the preparation period of an enterprise can be accounted for by the 60% of the actual amount incurred in the preparation of the enterprise, and shall be deducted according to the relevant provisions before tax".

Therefore, the business entertainment expenses related to the preparatory activities during the preparation period will not be affected by the level of sales revenue. Even if the sales revenue can not be obtained during the preparatory period, it can be directly included in the enterprise's preparation fee according to 60% of the actual amount of the business entertainment fee and regulated according to the pre tax deduction.