Risk Prevention And Control Of Business Entertainment, Travel And Conference Fees In The Settlement Of Income Tax

1. The limit of pre tax deduction for business entertainment expenses.

1. According to the forty-third provision of the regulations on the implementation of the enterprise income tax law, the business entertainment expenses incurred by enterprises in relation to production and business activities shall be deducted according to the 60% tax amount incurred, but the maximum shall not exceed 0.5% of the sales or operating income of that year.

The sales (business) income of that year includes sales revenue.

2. 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 ratio.

3, during the period of preparation, the business entertainment expenses related to the preparation activities can be included in the enterprise's preparation fee according to the actual amount of 60%, and be deducted according to the relevant regulations before tax.

Business entertainment expenses usually include: expenses incurred for production and business need for banquets or working meals; expenses for delivering souvenirs to customers due to production and operation needs; expenses for visiting and traveling expenses and other expenses incurred for tourist spots arising from production and operation needs.

Business entertainment expenses are limited to entertainment expenses related to the production and operation of enterprises, and have nothing to do with the production and operation of enterprises.

The Commission for the sale of products for the enterprise, the labor expenses paid to the individual and the kickbacks to the customers shall not be included in the business entertainment expenses, nor can the business entertainment expenses be included in the conference fees.

The competent tax authorities of the tax authorities that require taxpayers to declare their deductions shall provide sufficient and valid credentials or information that can prove the authenticity of the documents provided by the tax authorities.

Three, travel expenses and meeting fees tax should be accompanied by sufficient and reasonable legal evidence.

The reasonable travel expenses, meeting fees and board fees related to the business activities of the taxpayer need to be provided with real and lawful certificates, which can be deducted before tax and not restricted by the proportion. This is very different from the business entertainment expenses, so many enterprises will pay the expenses of the business entertainment items in the travel expenses and the conference fees.

The scope and standard of travel expenses and conference fees are generally determined by the enterprises according to the local government standards and the specific circumstances of the enterprises.

The reasonable travel expenses, meeting fees and board of directors related to the business activities of the taxpayer may be used as the selling expenses and management expenses before the enterprise income tax is deducted, but they should be able to provide legal evidence to prove their authenticity.

The legal credentials for traveling expenses include: the name of the traveler, the place of arrival, the time of arrival, the duty, the train ticket, the ticket and the boarding machine. The proof of the conference fee includes: the invitation letter, the meeting time, the place, the attendant, the content, the purpose, the expense standard, the invoice, the payment voucher, etc.

In actual work, it is precisely because there is no pre tax deduction limit for travel expenses and conference fees. Some enterprises mix part of the business entertainment expenses into the travel expenses or conference fees items. Some financial personnel even subjectively do not intentionally include the business entertainment expenses into the conference fees. However, some of the financial personnel are not clear enough to distinguish between them. They will go wrong subjects if they do not pay attention to them. In addition, enterprises also include their business entertainment fees in other expenses items to deduct them, so as to conceal all kinds of commercial bribery, which constitutes an illegal act.

Five, establish and improve the company reimbursement system to prevent ex post risks.

Enterprises should establish and improve the expenses reimbursement system of the company, reasonably and strictly control the expenses, and prevent unreasonable business entertainment, travel expenses and conference expenses. For example, the travel expense reimbursement system should clearly stipulate the standards of accommodation, catering, pportation, business application and reimbursement process, and financial personnel should pay more attention to the legal compliance of the original bill.

In the increasingly strict management environment, financial personnel should keep the last link of the business chain better to avoid the occurrence of risk after the event.