The Practical Application Of Business Entertainment Fee On Enterprise Income Tax

1. How to calculate the amount of pre tax deduction for business entertainment expenses?

Article forty-third of the regulations on the implementation of the enterprise income tax law stipulates that the business entertainment expenses incurred by enterprises in relation to production and business activities shall be deducted from 60% of the total amount incurred, but the maximum amount shall not exceed 5 per cent of the sales (business) income of that year.

This can have.

In the tax Letter No. [2008]1081, it is mentioned that 1 of the first items of "sales (business) income" shall be stated in the relevant items: the taxpayer's income from the main business, other business income recognized by the taxpayer in accordance with the unified accounting system of the state, as well as those recognized according to the tax regulations shall be regarded as sales receipts.

And the tax service division of the General Administration also quoted this document in the answer to this question.

However, this document was abolished by the State Administration of Taxation on 2014 after the 2014 version of the enterprise income tax return. But it was also effective on the official website of the General Administration of the people's Republic of China (No. sixty-third).

However, even if abolished, that is the spirit of the document is still alive. In addition, we can also find the basis from other documents, that is, the national tax Letter No. [2008]828, which is the second document, which stipulates the situation that the sales revenue is determined.

That is to say, the sales (business) income that should be confirmed on the enterprise income tax = the main business income on Accounting + the other business income on Accounting + enterprise income tax should be recognized as sales revenue.

Further down, the 2014 edition of the enterprise income tax form indicates that the "first row x 60%" and the sales (operating income) x 5 per cent of the sales fee for business entertainment is therefore acceptable.

Three, are all the meal tickets business entertainment?

This is really not.

What is the business entertainment fee? Obviously, it must be an outsider, or a person other than the enterprise. If the invoice is "insider" reimbursement, is it a business entertainment fee? One of the "insider" reimbursement of meal invoices is one of the reasonable expenses for employees on business trip. This should not be included in the business entertainment expenses, and should be included in the travel expenses.

Therefore, not all the meal tickets are business entertainment expenses. They should be differentiated according to the causes, nature, purpose, purpose and object of the specific business.

Four. What is the base of the business entertainment expenses of the enterprises engaged in equity investment?

The Circular of the State Administration of Taxation on the implementation of certain tax issues in the enterprise income tax law (National Tax Letter No. [2010]79) has made special provisions on the calculation basis for the business entertainment expenses of enterprises engaged in equity investment business, that is, the dividends, dividends and share pfer income of the enterprises engaged in equity investment business (including group headquarters, venture capital enterprises, etc.), which are allocated from the invested enterprises, can be calculated according to the prescribed proportion of the business entertainment expenses deduction quota.

The reason is that the equity investment business is the main business income of such enterprises. There is no other business activities, and the proportion of business entertainment expenses deducted is relatively low, so special regulations are made.

Enterprises that do not specialize in equity investment do not apply this rule.

Five, can the checking income be used as the base of the business fee?

First, the sales (business) income of the enterprise income tax return includes main business income, other business income and sales revenue.

Therefore, to check whether income can be used as a base, I think it can be divided into two cases:

1. if the enterprises check out the income they have checked out voluntarily, if they voluntarily cancel the redeclaration, and include the checking income into the sales (business) income, they can be regarded as the deductible base for the business entertainment expenses, but one thing is for sure.

2., there will not be any problem of redeclaration for the checking and checking revenue of the tax authorities. The accounting treatment of the enterprise is generally included in the previous year's profit and loss adjustment. At the same time, the data declared in the "sales (business) income aggregate" declared at the time of tax declaration can not be added as the base of the annual business entertainment fee.

According to the Announcement No. fifteenth of 2012 of the State Administration of Taxation, the expenses incurred for business entertainment related to the preparatory activities during the period of preparation for construction enterprises can be included in the enterprise's preparation fee according to the actual amount of 60%, and shall be deducted according to the relevant provisions before tax.

Seven. Is it a business entertainment to present gifts to existing or potential customers?

Business entertainment refers to the expenditure incurred by the entertaining customers related to the production and operation activities. It includes not only the consumption of guests, but also the gifts or other forms, because the gift giving is still the expenditure incurred for promoting the business and maintaining the customer relationship, so it still belongs to the business entertainment expenses.

If the LOGO is printed on the enterprise when ordering the gift, it can be treated as a business publicity fee. Of course, it depends on the amount and the rationality of the gift. Otherwise, even if you send Audi, LOGO can not be regarded as a business promotion fee.

Eight, customers to the company to investigate the company's pportation, accommodation costs are entertainment fees?

The enterprise income tax law stipulates that the actual expenses related to the acquisition of income, including costs, expenses, taxes, losses and other expenses, shall be deducted when calculating the taxable income.

Related expenditures refer to expenditures directly related to income.

A reasonable expenditure is a necessary and normal expenditure that should conform to the routine of production and operation activities and should be included in the profits and losses of the current period or the cost of the assets concerned.

Customers visit the company to investigate the nature of the business and entertainment expenses of the company, so they should belong to the business entertainment expenses.

Nine, business entertainment fees if in the construction project accounting how to pay tax adjustment.

First of all, it is necessary to determine whether the business entertainment fee can be accounted for in the construction project. The accounting contents of the accounting standards only include the business entertainment expenses, and the entertainment expenses do not meet the necessary expenditures for reaching the predetermined use status of the project. Generally speaking, the business entertainment expenses are not included in the construction projects.

Even though some enterprises have accounted for the business entertainment expenses in the construction projects, the business entertainment expenses have been adjusted to deal with the tax law, so the business entertainment expenses that are calculated in all subjects will be merged directly and adjusted according to the requirements of the tax policy.

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