I would like to ask you about the pre tax expenses for business entertainment expenses

Big brother, what kind of tax law are you looking at.

The new tax law stipulates that enterprises will deduct 60% of the amount incurred, but the maximum shall not exceed the sales (business) income of the current year.

I think the bigger the sale, the better the deal; If the scale, sales, and amount are relatively small, it is disadvantageous.

However, according to your tax office, net sales = sales revenue - costs.

Business income = sales revenue + other business income.

I think if I had to choose between the two, I would choose the second one.

Because the important business income is the main business income (sales revenue), how can it be compared.

Sales revenue*1% will definitely be greater than net sales*

Because, let's say net sales = sales revenue * 80%.

Do you think that the sales revenue * 1% will be less than the sales revenue * 80%*?

Hello. Article 1 applies to the income from the sale of goods in the category of industry and commodity circulation.

Article 2 is applicable to enterprises in the service industry and other enterprises that obtain income from labor services.

As far as an enterprise is concerned, Article 1 shall apply to its income from sales, and Article 2 shall apply to its income from labor services, and Article 1 shall apply if it cannot be accurately divided.

Regulations for the Implementation of the Enterprise Income Tax Law of the People's Republic of China

Article 43: The business entertainment expenses incurred by the enterprise in connection with production and business activities shall be deducted according to 60% of the amount incurred, but the maximum shall not exceed 5 of the sales (business) income of the current year.

Business entertainment expensesThe standard of pre-tax expenditure of enterprise income tax is: the minimum value of the additional 60% of the income is compared with 5/1000 of the income. The difference between the other amount and this amount is an increase and cannot be charged before the enterprise income tax.

Basis: According to Article 43 of the Regulations on the Implementation of the Enterprise Income Tax Law of the People's Republic of China (Order No. 512), "the business entertainment expenses incurred by the enterprise related to production and business activities shall be deducted according to 60% of the amount incurred, but the maximum shall not exceed 5 of the sales (business) income of the current year."

Taking the reimbursement bills taken back by colleagues as an example, the transportation expenses, meal expenses, accommodation expenses, etc. of the colleagues are part of the travel expenses, while the expenses for entertaining customers and purchasing gifts for customers are business entertainment expenses. Similarly, the expenses of a company dinner or meeting are not business entertainment expenses! They belong to the benefits payable and conference expenses!

To put it simply, only the entertainment expenses paid for the reasonable needs of business operations belong to business entertainment expenses, such as business negotiations, product promotion, external liaison, public relations exchanges, conference reception, guest reception, etc.

Business entertainment expenses refer to the various expenses paid by enterprises for reception and entertainment in business management and other activities, mainly including business negotiations, product promotion and distribution, external liaison, public relations exchanges, conference reception, guest reception, etc., such as entertainment meals, tobacco and tea for entertainment, transportation expenses, etc. The new "Regulations for the Implementation of the Enterprise Income Tax Law" has changed the previous deduction ratio, and the accounting system stipulates that business entertainment expenses can be deducted before income tax as a reasonable expense for the production and operation of enterprises, and the tax law stipulates that within a certain proportion range, they can be deducted before income tax, and the part exceeding the standard shall not be deducted.

In terms of the scope of business entertainment expenses, neither the financial accounting system nor the old and new tax laws have given an accurate definition. In the practice of tax enforcement, the specific scope of entertainment expenses is as follows:

1) Expenses for banquets or working meals for the production and operation needs of the enterprise.

2) The cost of giving souvenirs to the production and operation of the enterprise.

3) Expenses incurred by enterprises for visiting tourist attractions, transportation and other expenses incurred in production and operation.

4) Travel expenses incurred by business relations personnel due to the production and operation needs of the enterprise.

Tax law provisions. Enterprises should strictly distinguish between business entertainment expenses and conference expenses, and should not squeeze business entertainment expenses into conference expenses. If the tax authorities require supporting materials for travel expenses and conference expenses incurred by taxpayers related to their business activities, they shall be able to provide legal documents to prove their authenticity, otherwise they shall not be deducted before tax.

Proof of conference fee includes meeting time, place, attendees, content, purpose, fee standard, payment voucher, etc. In the accounting of business entertainment expenses, it is necessary to collect them according to the prescribed subjects, and if the expenses that belong to the nature of business entertainment expenses are hidden in other accounts according to the regulations, pre-tax deduction is not allowed.

The business entertainment expenses incurred by the enterprise related to production and business activities shall be deducted according to 60% of the amount incurred, but the maximum shall not exceed the sales (operating) income of the current year.

For example: the company's 100w sales, a, if the actual business entertainment expenses of 10,000, how to calculate? b. What if 2000 actually happens?

a. If the actual business entertainment expenses are 10,000, the deduction standard.

1) The maximum shall not exceed 100w yuan;

2) Calculated according to the actual amount, that is: 10,000 60%=6,000 yuan.

Look at (1) and (2) who is lower, the deduction standard will be taken, therefore, the deduction standard should be 5,000 yuan.

b. If the actual business entertainment expenses are 2000, 1) the maximum shall not exceed 100w yuan, 2) calculated according to the actual amount, that is: 2000 60% = 1200 yuan, 1) compared with (2), (2) the lowest, take (2), the expense deduction standard is 1200 yuan, deduct the expenses according to 1200, and spend before income tax!

Extended information: Business entertainment expenses are the entertainment expenses paid by enterprises for the reasonable needs of business operations. Prior to the current reform of the financial system, there was no unified standard for the expenditure of business entertainment expenses of all types of enterprises across the country, and there were basically no standards for other types of enterprises except for the expenditure standards for business entertainment expenses in the Enterprise Income Tax Law (the Interim Provisions on Several Issues Concerning the Financial Management of Joint-stock Pilot Enterprises, promulgated in June 1992, set out the standards for foreign-invested enterprises).

The financial departments of the provinces, autonomous regions, and municipalities directly under the Central Government shall determine different quotas for the operational entertainment expenses of state-owned enterprises according to the scale of production and operation of the enterprises, and the enterprises shall grasp the actual reimbursement of the entertainment expenses within the limits and conduct year-end audits. This kind of management method is not conducive to creating an external environment of equal competition for all kinds of enterprises, nor is it conducive to the transformation of functions of functional departments and strengthening financial supervision. The current financial reform has unified the standards for business entertainment expenses of various enterprises.

The current tax law stipulates that:

Article 43 of the Implementing Regulations clearly stipulates that the business entertainment expenses incurred by an enterprise in connection with production and business activities shall be deducted at 60% of the amount incurred, and the maximum shall not exceed 5 (5/1000) of the sales (business) income of the current year.

Business entertainment expenses are often incurred by enterprises for the purpose of contacting business or **, dealing with social relations, etc., the new "Regulations for the Implementation of the Enterprise Income Tax Law" has changed the previous deduction ratio, business entertainment expenses as a reasonable expense of enterprise production and operation business, the accounting system stipulates that it can be deducted according to the facts, and the tax law stipulates that it can be deducted before income tax within a certain proportion range, and the part that exceeds the standard shall not be deducted.

If an enterprise declares and deducts business entertainment expenses, and the tax authorities require supporting materials, it shall provide sufficient valid vouchers or materials to prove that they have truly occurred. If it cannot be provided, it shall not be deducted before tax. The content of the supporting materials includes the amount of expenditure, commercial purpose, business relationship with the person being entertained, and the time and place of the waiter.

Personal entertainment expenses and hobby expenses of corporate investors or employees shall not be declared and deducted as business entertainment expenses.