Can hospitality expenses be deducted? Is the input tax on hospitality deductible?

Hello, hospitality expenses are deductible, but not in full.

The business entertainment expenses incurred by the enterprise related to 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 (operation) 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 cost of enterprise production and business operations, 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 entertainment.

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

Depending on what the specific items are, under normal circumstances, it is determined that the company's expenses can be deducted from the profits, and the meal expenses can only be deducted from the actual amount and do not exceed the sales revenue of the current year

Business entertainment expenses are the entertainment expenses paid by enterprises for the reasonable needs of production and operation of business. It is a real and necessary expense incurred in the production and operation of the enterprise, and it is a necessary cost for the normal business activities of the enterprise. It is a personal consumption, so the input tax on business entertainment expenses is not deductible.

Input VAT refers to the amount of value-added tax paid or borne by taxpayers for the purchase of goods, processing and repair services, services, intangible assets or immovable property. Input tax is the tax you pay after you buy goods or services; There is also a type of output tax, which is the tax you have to pay on the sale of goods or services. If you are a buyer, the seller's output tax is your input tax.

Generally, the amount of force has been listed on the special VAT invoice issued. The input tax of a general-scale taxpayer enterprise can generally be used to offset the output tax. But small-scale taxpayers cannot.

Legal basis] Provisional Regulations of the People's Republic of China on Value Added Tax

Article 10 The input VAT of the following items shall not be deducted from the output VAT:

1) Purchased goods, services, services, intangible assets and immovable property for the purpose of taxable items under the simplified tax calculation method, value-added tax exemption items, collective welfare or personal consumption;

2) Purchased goods with abnormal losses, as well as related labor services and transportation services;

3) Purchased goods (excluding fixed assets), labor services and transportation services consumed in products and finished products due to abnormal losses;

4) Other items specified in ***. Article 8 The amount of value-added tax paid or borne by taxpayers for the purchase of goods, services, services, intangible assets and immovable property shall be the input tax amount.

The following input VAT is allowed to be deducted from the VAT on the sale of the Yuanyu:

1) The VAT amount indicated on the special VAT invoice obtained from the seller.

2) The amount of VAT indicated on the special payment certificate for import VAT obtained from the Customs.

3) For the purchase of agricultural products in the world section, in addition to obtaining a special VAT invoice or a special payment certificate for customs import VAT, the input tax calculated according to the purchase price of agricultural products indicated on the purchase invoice or sales invoice of agricultural products and the deduction rate of 11% shall be calculated unless otherwise specified. Input VAT calculation formula:

Input VAT = Purchase Price * Deduction Rate.

4) The amount of VAT indicated on the tax payment voucher for the withholding and payment of tax obtained from the tax authorities or withholding agents for the purchase of labor services, services, intangible assets or immovable property within the territory of China purchased from overseas entities or individuals.

The items that are allowed to be deducted and the adjustment of the deduction rate shall be determined by ***.

Legal analysis: Entertainment expenses 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.

Legal basis: Article 43 of the Regulations on the Implementation of the Enterprise Income Tax Law of the People's Republic of China Article 43 The business entertainment expenses incurred by an 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. Void silver auspicious.