What is the cost of hospitality under the new accounting law

According to Article 43 of the new Regulations for the Implementation of the Enterprise Income Tax Law of the People's Republic of China, "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 5/1000 of the sales (business) income of the current year." ”

Example 1: If an enterprise has a sales revenue of 30 million yuan in 2008 and actually spends 280,000 yuan on business entertainment, how much can be deducted before income tax?

Example 2: If an enterprise has a sales revenue of 5 million yuan in 2008 and actually spends 20,000 yuan on business entertainment, how much can be deducted before income tax?

Answer: Example 1, first increase: 28 40% = 10,000 yuan, five thousandths of sales revenue:

3000 5 = 150,000 yuan, 60% of business entertainment expenses: 28 60% = 10,000 yuan, should also be increased by 10,000 yuan, a total should be increased: 10,000 yuan, and the business entertainment expenses that can be deducted before income tax are 150,000 yuan.

Example 2, first increase: 2 40% = 10,000 yuan, 5/1000 of sales revenue: 500 5 = 10,000 yuan, 60% of business entertainment expenses: 2 60% = 10,000 yuan, business entertainment expenses that can be deducted before income tax are 10,000 yuan.

Property insurance premiums should be included in the management costs - insurance premiums.

First of all, hospitality mainly refers to business entertainment expenses.

Business entertainment expenses generally refer to a reasonable and necessary expenditure incurred by a company for business operations. Includes: meals, accommodation fees, food, gifts, normal entertainment.

So, how to account for hospitality expenses in accounting practice? Here are a few examples.

1. If it is the entertainment expenses incurred by the enterprise management department, it should be included in the "management expenses."

business entertainment expenses". Its accounting entries are: borrow: management expenses - business entertainment expenses credit: bank deposits cash in hand.

2. If it is the entertainment expenses incurred by the sales department of the enterprise, it should be included in the "sales expenses."

business entertainment expenses". Its accounting entries are: debit: sales expenses - business entertainment expenses credit: bank deposits cash in hand.

Reminder: The business entertainment expenses incurred by the enterprise related to the excitement of production and operation activities shall be deducted according to 60% of the amount of the difference in the tax declaration, but the maximum shall not exceed the sales income of the current year.

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The accounting treatment of business entertainment expenses shall be included in the management expenses. In practice, it is necessary to record the corresponding accounts according to the actual situation. For example, the entertainment expenses incurred by the management department are generally included in the management expenses, the business entertainment expenses incurred by the sales department are included in the sales expenses, and the business entertainment expenses incurred in the workshop are included in the manufacturing expenses.

The specific entries are as follows:

Borrow: Administrative Expenses, Manufacturing Expenses, Selling Expenses—Business Entertainment Expenses.

Credit: cash on hand bank deposits.

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.

Management fees include:

Wages, employee welfare expenses, business entertainment expenses, post and telecommunications expenses, travel expenses, board of directors fees, office expenses, automobile expenses, amortization of low-value consumables, amortization of intangible assets, start-up expenses, labor insurance premiums, transportation and miscellaneous expenses, trade union funds, depreciation of fixed assets, research and development expenses, technology transfer expenses, technical service fees, taxes, employee education expenses, repair costs, etc.

In order to account for and manage the occurrence and carry-over of management expenses, enterprises should set up an "administrative expenses" account. The management expenses incurred by the debit registration enterprise of the account, and the management expenses transferred to the "profit of the year" account at the end of the credit registration month, should generally have no balance at the end of the month.

The practice of accounting entries for entertainment expenses is: debit: administrative expenses or sales expenses - business entertainment expenses, credit: cash.

Business stool entertainment expenses: business entertainment expenses refer to the entertainment expenses paid by enterprises for the needs of business operations, and their excessive deduction is a problem faced by many enterprises, and it is also the most adjusted cost item involved in the final settlement of income tax.

The business entertainment expenses incurred by the enterprise are high, and the accounting treatment is carried out according to the amount of invoices received and the department. Business entertainment expenses belong to the category of personal consumption, and the input VAT of VAT and invoice shall not be deducted. You should directly obtain a general VAT invoice, otherwise you must first certify and then transfer out the input tax.

Borrow: administrative expenses or sales expenses - business entertainment expenses, credit: bank deposits, etc.

Accounting entries for reception fees:

Borrow: Administrative expenses - business entertainment expenses. Credit: cash on hand or bank deposits.

Deduction standard for business entertainment expenses:

According to Article 43 of the Regulations for the Implementation of the Enterprise Income Tax Law of the People's Republic of China, the business entertainment expenses incurred by the enterprise related to production and business activities shall be deducted according to 60% of the amount incurred. However, the maximum shall not exceed 5% of the sales (business) income of the current year.

Note: Operating income here = main business income + other business income.

If an enterprise declares the deduction of business entertainment expenses for the purpose of deducting relatives and brothers, and the tax authorities require supporting materials, it shall provide sufficient valid proof or materials to prove that it has truly occurred. If it cannot be provided, it shall not be deducted before tax. The content of the supporting documents includes the amount of expenditure, the purpose of the business, the business relationship with the guest, and the time and place of the hospitality.

The personal entertainment expenses and hobby expenses of enterprise investors and employees shall not be declared and deducted as business entertainment expenses.

Borrow: management expenses, sales expenses, etc. - business entertainment expenses, credit: cash in hand bank deposits, business entertainment expenses are entertainment expenses paid by the enterprise for the reasonable needs of the business before the operation of the business.

The business entertainment expenses incurred by the enterprise related to production and business activities shall be deducted according to 60% of the amount of Fahui's poor income, but the maximum shall not exceed 5 (5/1000) of the sales (operation) income of the current year.

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 it has 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.

Entertainment expenses are included in the accounting of administrative expenses - business entertainment expenses.

The increase in expenses will be included in the debit accounting, and at the same time, it will lead to the reduction of monetary funds, and the reduction of assets will be included in the credit accounting.

The entertainment expenses incurred by the unit are treated as follows: debit: management expenses - business entertainment expenses, credit: bank deposits and other accounts.

The business entertainment expenses of the enterprise are generally accounted for through management expenses or sales expenses, and the entries are:

Borrow: Administrative expenses or selling expenses - business entertainment expenses.

Credit: Cash. Business entertainment expenses refer to the entertainment expenses paid by enterprises for the needs of business operations, and their excessive deduction is a problem faced by many enterprises, and it is also the cost and expense item involved in the most adjustment in the final settlement of income tax.

The entries are as follows:Borrow: Administrative expenses. Credit: Bank deposits.

Borrow: Profit for the year. Credit: Administrative expenses.

What does the management fee mean:It refers to the various expenses incurred by the enterprise for the organization and management of production and operation, including the start-up expenses incurred by the enterprise during the preparation period, the company expenses incurred by the board of directors and the administrative defense management department in the operation and management of the enterprise, and the company expenses that should be borne by the enterprise, the trade union expenses, the board of directors fees, the fees for hiring intermediaries, consulting fees, litigation fees, business entertainment expenses, technology transfer fees, research expenses, etc.

Subsequent expenses such as fixed asset repair costs incurred by the production workshop and administrative management department of the enterprise are also accounted for as management expenses. Article 43 of the Regulations for the Implementation of the Enterprise Income Tax Law stipulates that the business entertainment expenses incurred by an 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. Employee welfare expenses are allowed to be deducted from the part of the total salary that does not exceed 14%.