Journalism

What points should we pay attention to before tax deduction of business entertainment expenses?

2021-03-02

Business entertainment expenses

Pre tax deduction

What are the key points to pay attention to?

The reasonable entertainment expenses paid by an enterprise in production and business operation may be deducted before tax as business entertainment expenses within the deduction limit stipulated in the enterprise income tax law.So in the pre tax deduction of business entertainment expenses, what are the specific precautions? Let's have a look at it together!

1、 Policy provisions

According to the regulations for the implementation of the enterprise income tax law of the people's Republic of China ( Order of the State Council of the people's Republic of China five hundred and twelve number ) Article 43 provides that: The business entertainment expenses related to production and operation activities of an enterprise shall be calculated according to the amount incurred 60% Deduction, but not more than the current year's sales ( do business ) Income 5‰ Business entertainment expenses are deducted and adopted Double quota and The smaller principle 。The calculation base for the deduction limit of advertising expenses, business publicity expenses and business entertainment expenses is the total sales (operating) revenue = Main business income + Other business income + It is regarded as sales income, but does not include non operating income such as government subsidy income.

2、 Case study

A domestic resident enterprise two thousand and twenty The annual sales revenue is one thousand The actual amount of business entertainment expenses is six How much is the pre tax deduction allowed ? If the actual amount of business entertainment expenses is four How much is the pre tax deduction allowed ? If the actual amount of business entertainment expenses is ten How much is the pre tax deduction allowed ?

01

Actual amount incurred No more than That year

sale ( do business ) Income 5‰

The sales revenue is one thousand The actual amount of business entertainment expenses is four Ten thousand yuan, according to the amount of 60% The pre tax deduction is 4*60%=2.4 Ten thousand yuan.

02

Actual amount incurred exceed That year

sale ( do business ) Income 5‰

one Actual amount 60% less than Sales in the year ( do business ) Income 5‰ The sales revenue is one thousand The actual amount of business entertainment expenses is six Million yuan, more than the sales of that year ( do business ) Income 5‰ Namely five But according to the actual amount 60% The actual pre tax deduction is three point six Therefore, the enterprise can deduct before tax in the current year three point six Ten thousand yuan. two Actual amount 60% greater than Sales in the year ( do business ) Income 5‰ The sales revenue is one thousand The actual amount of business entertainment expenses is ten Ten thousand yuan, according to the actual amount 60% The amount of pre tax deduction is six However, the maximum sales amount shall not exceed that of the current year ( do business ) Income 5‰ , sales revenue one thousand Ten thousand yuan 5‰ by five Therefore, under this situation, the enterprise can only deduct before tax five Ten thousand yuan, more than five The part of 10000 yuan shall not be deducted before tax.

3、 Key points

01

Business entertainment expenses not actually incurred

No pre tax deduction is allowed.

A company two thousand and twenty Annual sales revenue 0.5% Business entertainment expenses have been withdrawn five hundred Ten thousand yuan, but A The actual business entertainment expenses of the company are only four hundred and fifty There is no actual business entertainment expenses fifty Ten thousand yuan can not be deducted before tax fifty WANYING will increase the total amount and will not participate in the deduction of the limit.

02

Pay attention to business entertainment expenses

The base of the pre tax deduction.

According to the notice of the State Administration of Taxation on some tax treatment issues in the implementation of enterprise income tax (state tax letter [ two thousand and nine two hundred and two It is stipulated that: When an enterprise calculates the deduction limit of business entertainment expenses, advertising expenses and business publicity expenses, its sales (business) income shall include the amount of deemed sales (business) income stipulated in Article 25 of the implementation regulations. Therefore, the pre tax deduction calculation base of business entertainment expenses includes main business income, other business income and deemed sales income.In addition, according to the notice of the State Administration of Taxation on several tax issues concerning the implementation of the enterprise income tax law (tax letter [ two thousand and ten seventy-nine It is stipulated that: For enterprises engaged in equity investment business (including headquarters of group companies, venture capital enterprises, etc.), the limit of business entertainment expenses deduction can be calculated according to the prescribed proportion for the dividends, dividends and equity transfer income distributed from the invested enterprises.

03

Special regulations during the preparation period.

Announcement of the State Administration of Taxation on several tax treatment issues concerning taxable income of enterprise income tax two thousand and twelve Year end fifteen Article 5 provides that: During the period of establishment (preparation), the business entertainment expenses related to the preparatory activities may be paid according to the actual amount 60% It shall be included in the enterprise preparation expenses and deducted before tax according to relevant regulations. ” 

4、 Declaration form

The pre tax deduction limit of business entertainment expenses only needs to adjust the taxable income in accordance with the tax law and the differences between tax and society during the annual remittance and declaration of enterprise income tax, and there is no need to adjust the tax when reporting quarterly prepayment of enterprise income tax. The specific annual return forms are "business entertainment expenses" in line 4 of a104000 "detailed statement of period expenses" and "details of tax adjustment items" of a105000Line 15 "business entertainment expenses".


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