Accounting And Income Tax Treatment Of Meals Expenses In Enterprises

A friend who worked as an accountant in a business came to the question: Recently, Xiao Li, the company's business department, has reimbursed a meal expenses, which amounted to 1080 yuan.

Q: how to conduct accounting and tax treatment? This kind of problem is often encountered in work. It seems simple, but it is not easy to answer accurately. Because there are different stories behind a meal invoice, each story will affect the processing result of this invoice.

The expenses of meals in the enterprise generally have the following situations:

One is to entertain customers.

The guest is not a company employee.

The two is the three (noon) meal expenses of the company employees.

Three is the company's employees' meals (not lunch) expenses.

The four is food expenses (or subsidies) for employees on business trips.

The five is food expenses not related to the operation of enterprises (such as expenditures not in the above four situations or the expense of outsiders who have nothing to do with business).

In view of the above five situations, there are corresponding rules and regulations for the expenses of meals, accounting and taxation.

Next, from the perspective of financial accounting and taxation, the author analyzes the expenses of the above cases respectively:

(1) financial treatment

The thirty-seventh provision of the general financial regulations of enterprises (No. forty-first of the Ministry of Finance) stipulates that enterprises shall implement the centralized, hierarchical and budgetary control of expenses, and establish the necessary scope, standard and reimbursement approval system for expenses.

The forty-sixth rule is that enterprises should not take the following personal expenses: (1) entertainment, fitness, tourism, hospitality, shopping, gifts and other expenses.

(five) other expenses that should be borne by individuals.

Therefore, the first four expenditures of the above meals expenses belong to the expenses range of the enterprises, and can be included in the cost and expenses of the enterprises.

(two) accounting treatment

The accounting standards for enterprises (basic accounting standards) (Ministry of Finance Order No. thirty-third) related expenses have been stipulated:

The thirty-third cost refers to the total outflow of economic interests that are not related to the distribution of profits to owners.

The thirty-fourth cost can be recognized only if the economic benefits are likely to flow out, resulting in reduced assets or liabilities, and the outflow of economic benefits can be measured reliably.

In order to produce products, provide services, etc., the thirty-fifth enterprises may charge the cost of products and labor services, etc., and shall, when confirming the sales revenue and labor income of the products, and so on, shall include the cost of the products already sold and the services provided to them into the current profits and losses.

If an enterprise's expenditure does not generate economic benefits or even if it can generate economic benefits, but does not conform to or no longer meet the conditions for asset recognition, it shall be recognized as expenses at the time of occurrence and shall be included in the profits and losses of the current period.

Where an enterprise's pactions or events cause it to bear a liability and does not recognize it as an asset, it shall be recognized as a cost at the time of its occurrence and shall be included in the profits and losses of the current period.

Therefore, the first four items of food expenses should be included in the cost and expenses of enterprises. According to the difference of business, they should be included in the operating cost and operating cost respectively.

The general breakdown is as follows:

1. customers pay for meals:

(1) the management level of the customer is included in the management fee.

(2) sales department entertaining customers: included in the "sales cost" subject;

(3) the production department entertained customers: it is included in the "manufacturing cost" subject;

(4) the infrastructure department entertain customers: it is included in the "construction project" subject;

(5) the R & D department entertaining customers: accounts for R & D expenditure;

(6) what happens during the preparatory period of an enterprise: included in the "long term prepaid expenses" and other subjects;

...

All the details are "entertainment expenses".

2. staff's three (noon) meal expenses:

The details of the processing are 1 and the details are all "welfare costs".

Related documents: Ministry of Finance notice on strengthening financial management of staff welfare cost (financial enterprise [2009]242)

3. staff's meal (not lunch) expenses:

According to the regulations of the financial department, a person who works in the urban and suburban areas can not work in a city or in the suburbs, and can not eat at a work place, and he really needs to eat out. According to the actual number of meals eaten, he will receive the wrong meal according to the prescribed standard.

The specific handling situation is not included in the "1" and "detailed" subjects in terms of "entertainment expenses" and "welfare costs".

4. employees' food expenses (or subsidies) on a business trip:

(1) food expenditure for the quota is real, and the first class subject is 1.

The detailed subject is "travel expenses".

(2) carrying out the quota subsidy for travelling meals, the first level subjects are 1.

The detailed items are "travel expenses" or "subsidies".

5. expenditure on meals that are not related to business operations (such as expenditures not in the above four situations or outsiders' expenses, etc.).

According to the general rules of enterprises and the basic accounting standards for enterprises, the expenses of meals that are not related to business operations are not reimbursed by enterprises.

1. customers pay for meals.

The cost of entertainment expenses for customers is the "entertainment expenses" of the tax law, which is a pre tax deduction.

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.

Note the main points:

(1) the caliber of the sales (business) income of that year includes the amount of sales (business).

[state tax letter [2009] 202 No. 1]

(2) enterprises engaged in equity investment business, including group headquarters, venture capital enterprises, etc., can calculate the deduction of business entertainment expenses according to the prescribed ratio in terms of dividends, dividends and share pfer income from the invested enterprises.

[national tax Letter No. [2010]79 eight]

(3) business expenses incurred for business activities related to preparation activities during the preparation period can be accounted for by 60% of the actual amount incurred, and the tax shall be deducted according to the relevant provisions.

[announcement of the State Administration of Taxation fifteenth, five, 2012]

Local regulations:

(1) the expenses of the internal meetings held by enterprises should be deducted from the tax expenses before meeting the expenses of the meetings. During the meeting, the expenses of entertaining customers should be taken as the business entertainment expenses before the tax deduction according to the standard limits stipulated in the tax law.

[Zhejiang Province State Administration of Taxation 2011 forty-seventh questions on settlement of enterprise income tax settlement]

2. staff's three (noon) meal expenses

The three (noon) meal expenses of employees belong to the "welfare cost" of the tax law, which is a pre tax deduction item.

Article fortieth of the regulations on the implementation of the enterprise income tax law stipulates that the expenses of staff and workers' welfare expenses that do not exceed 14% of the total wages and salaries shall be deducted.

Note the main points:

(1) the total amount of wages and salaries refers to the sum of wages and salaries actually paid by enterprises in accordance with the regulations, excluding the staff and workers' welfare expenses, staff education funds, trade union funds, endowment insurance premiums, medical insurance premiums, unemployment insurance premiums, work-related injury insurance premiums, maternity insurance premiums and other social insurance premiums and housing provident funds.

[national tax Letter No. [2009]3 two]

(2) the wages and salaries of a state owned enterprise shall not exceed the limit given by the relevant government departments; the excess part shall not be included in the total amount of wages and salaries of the enterprise, nor shall it be deducted when calculating the taxable income of the enterprise.

[national tax Letter No. [2009]3 two]

(3) the actual expenses of enterprises accepting external labor dispatching shall be deducted in two cases according to the regulations. The expenses directly paid to the labor dispatch companies according to the agreement (contract) shall be paid as labor expenses, and the expenses directly paid to the employees shall be paid as wages and salaries and staff welfare expenses.

The cost of wages and salaries shall be included in the base of the total wages and salaries of the enterprise as the basis for calculating the deduction of other related expenses.

[announcement on the issue of pre tax deduction of wages, salaries and welfare expenses for workers and staff) (State Administration of Taxation Announcement No. thirty-fourth 2015) three]

3. staff's meal (not lunch) expenses

Employees' meals (not lunch) are expenses for normal operating expenses and full tax deduction.

Note the main points:

Allowance for misuse of meals is not a subsidy or allowance for wages or salaries, or income from items of wages and salaries earned by taxpayers.

[IRS [1994]089 two]

A non tax subsidy for misgiving is a meal which is provided by the financial department according to the prescribed standards.

Subsidies and allowances issued to employees in the name of meal allowance shall be incorporated into the personal income tax collected from wages and salaries.

[fiscal and taxation words [1995]082]

4. food expenses (or subsidies) for staff on business trip

Food expenses (or subsidies) for employees on business trips are deducted according to the standard before the tax expense for normal operating expenses.

The standard can be referred to the Ministry of finance's "central and state agencies travel expenses management measures" (Financial Bank [2013]531).

Most areas are 100 yuan per person per day.

Note the main points:

Travel allowance does not belong to subsidies or allowances of wages and salaries, or does not belong to the income of taxpayers' salaries and salaries.

[IRS [1994]089 two]

Local regulations:

(1) the subsidy standard for travel expenses can be implemented according to the standards set by the financial department or by the resolution of the board of directors of the enterprise.

[national tax issue No. [2009]21 fifteen]

In addition, the expenses of meals not related to the operation of enterprises (such as the expenditure of those four situations or the expenses of outsiders who are not related to business operation) are not related to the operation of the company.

The eighth provision of 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 from the calculation of taxable income.

The interpretation of the regulations on the implementation of the enterprise income tax law is:

(1) related expenditures refer to expenditures directly related to income.

(2) reasonable expenditure refers to the 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 related assets.

(3)

It refers to the sales expenses, administrative expenses and financial expenses that the enterprise has in the production and operation activities, excluding the related expenses that have been included in the cost.

(4) other expenditures refer to the reasonable expenditures related to production and business activities in addition to costs, expenses, taxes and losses.

At present, the accounting profession is basically conscientious, and the financial statements of certified public accountants and firms are basically reliable.

However, because of such and such reasons, the content of the data reflected in the financial statements of many enterprises is very different. In view of the requirements of the industry standard and information disclosure, accountants can only act within the scope of the guidelines, and the situation behind these data can only be grasped and conjured up by the readers of the financial statements.

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