Income tax advertising expense deduction, advertising expense income tax pre tax deduction standard

When incurred: Debit: Sales Expense, Credit: Bank (Cash).

If the final settlement exceeds the turnover by 15, the excess income tax entries: debit: deferred tax assets, credit: income tax - deferred income tax, borrow: income tax - income tax expense of the current year, credit: tax payable - income tax payable.

Income tax payable.

The second year: If the advertising expenses do not exceed, the increase in the income tax of the advertising expenses of the previous year can be deducted in the current year, and the entries: debit: income tax - deferred income tax expense credit: deferred tax assets.

The deduction standard for advertising expenses is 15% of the sales revenue of the current year, and those that have not been deducted will be deducted in the next year, and the income tax amount will not be adjusted.

According to the Notice of the Ministry of Finance and the State Administration of Taxation on the Pre-tax Deduction Policy for Advertising Expenses and Business Publicity Expenses (Cai Shui [2012] No. 48), the part of the advertising expenses and business publicity expenses incurred by enterprises in the manufacture and sale of cosmetics, pharmaceutical manufacturing and beverage manufacturing (excluding alcohol manufacturing, the same below) shall not exceed 30% of the sales (operation) income of the current year, and shall be allowed to be deducted; The excess amount is allowed to be carried forward and deducted in subsequent tax years.

For affiliated enterprises that have signed an agreement on the sharing of advertising expenses and business promotion expenses (hereinafter referred to as the apportionment agreement), the advertising expenses and business promotion expenses incurred by one of the parties that do not exceed the proportion of the pre-tax deduction limit of sales (business) income of the current year can be deducted by the enterprise, or part or all of them can be collected and deducted by the other party in accordance with the apportionment agreement. When calculating the pre-tax deduction limit of enterprise income tax for the advertising expenses and business promotion expenses of the other party, the advertising expenses and business promotion expenses that are collected in accordance with the above methods may not be counted.

Therefore, it is sufficient for taxpayers to comply with the above provisions.

Taxable income is the basis for enterprises to calculate income tax, so it is a knowledge point that financial personnel must master. So how to deduct advertising expenses when calculating taxable income?

Deduction standard for advertising expenses of taxable income.

According to Article 44 of the Regulations for the Implementation of the Enterprise Income Tax Law, the eligible advertising expenses and business promotion expenses incurred by the enterprise shall be deducted from the part of the sales (business) income of the current year, unless otherwise stipulated by the financial and tax authorities; The excess amount is allowed to be carried forward and deducted in subsequent tax years.

In other words, the deduction rate of advertising expenses is generally calculated at 15%. So what are the circumstances in which the deduction ratio is not applicable to 15%? According to the notice of the State Administration of Taxation of the Ministry of Finance on the pre-tax deduction policy for advertising expenses and business promotion expenses (Cai Shui [2017] No. 41).

1.Tobacco advertising expenses and business promotion expenses of tobacco enterprises shall not be deducted in the calculation of taxable income, that is, the deduction ratio is 0%.

2.Deductions are allowed for the part of advertising expenses and business publicity expenses incurred by enterprises manufacturing or selling cosmetics, pharmaceutical manufacturing and beverage manufacturing (excluding alcohol manufacturing) that do not exceed 30% of the sales (operating) income of the current year; The excess amount is allowed to be carried forward and deducted in subsequent tax years.

These two cases are also advertising expenses and can be deducted before tax.

Although some expenses are not "advertising expenses", as long as they belong to advertising expenses and meet the statutory conditions, they can also be deducted according to the pre-tax expenses of advertising expenses.

Situation 1: It is called a technical service fee, but it is actually an advertising fee.

Enterprises pay PPC fees on search engines or online** for the purpose of promoting their products or services, and are obviously advertising their products or services. Therefore, although the invoice item is "technical service fee", the transaction is essentially an advertisement and should be deducted as an advertising expense within the pre-tax limit.

Situation 2: It is called sponsorship fee, but it is actually advertising fee.

Although most of the invoices issued by the sponsor are "sponsorship fees", they are actually advertising expenses, which should be deducted by the enterprise before the enterprise income tax in accordance with the advertising expenses.

Print advertising is based on the net income from advertising fees minus printing costs, and the ad valorem tax rate is calculated. From July 1, 1985, the tax rate for print advertisements in general newspapers was 4 for stuffy dates, and the tax rate for other advertisements was 11. Advertising tax is the tax liability of those who print advertisements and manufacture taxable advertisements, and generally speaking, the taxpayer's advertising income is used as the tax standard.

Article 40 of the Measures for Pre-tax Deduction of Enterprise Income Tax formulated by the State Administration of Taxation came into effect on January 1, 2000, stipulating that if the advertising expenses incurred by taxpayers in each tax year do not exceed the sales (business) income, the actual deduction amount shall be 2; The excess can be carried forward to future tax payovers indefinitely. For general enterprises, according to the provisions of the Enterprise Income Tax Law, the calculation base of advertising expenses and business promotion expenses, that is, main business income, other business income, and sales (business) income, can be deducted before tax.

According to Article 40 of the Measures for Pre-tax Deduction of Enterprise Income Tax, if the advertising expenses incurred by the taxpayer in each tax year do not exceed the sales (business) income, the actual deduction amount is 2; The excess can be carried forward to future tax payovers indefinitely.

For printed advertisements, the tax is calculated on the basis of the net income after deducting the printing expenses from the advertising expenses, and the ad valorem rate is calculated and levied on the basis of Jingchabi. Since July 1, 1985, the tax rate for print advertising in general newspapers has been 4%, and the tax rate for other advertisements has been 11%.

Advertising tax is based on the person who publishes printed advertisements and other advertisements and produces taxable advertisements, and generally takes the advertising income obtained by taxpayers as the basis for taxation.

On January 1, 2000, the State Administration of Taxation formulated the "Measures for Pre-tax Deduction of Enterprise Income Tax", Article 40 of which stipulates that taxpayers can deduct 2% of the advertising expenses incurred in each tax year if they do not exceed the sales (business) income; The excess can be carried forward to future tax years indefinitely.

What is advertising expenses for businesses?

The so-called advertising fee refers to the cost paid by the enterprise to stimulate consumers' desire to buy its products or services through various first-class publicity or gifts, so as to achieve the highest purpose.

Advertising expenses refer to expenses that meet the following conditions at the same time: advertisements are published by specialized institutions approved by the Ministry of Industry and Commerce; through a certain ** spread; Obtain legal and valid certificates. Expenses for the production and publication of advertisements prohibited by the "Advertising Law of the People's Republic of China" are not advertising expenses.

Business promotion expenses refer to expenses that meet the following conditions at the same time: for the purpose of publicizing the assets, labor services and services of the enterprise; Albums, CD-ROMs, and appropriate physical objects as carriers; Obtain legal and valid certificates. Expenses for giving gifts to customers or specific related parties in the name of business promotion are not business promotion expenses.

The part that does not exceed 15% of the sales (business) income of the current year is allowed to be deducted; If the excess part is not buried, it is allowed to carry forward the deduction in the following tax years.

In the past, printing the company's logo on the gift and giving it to customers can be used as a business promotion fee and need to pay personal income tax, but it is not regarded as a sale in value-added tax. However, the new method of pre-tax deduction of corporate income tax has slowly blocked this way.

What is the deduction standard for corporate income tax advertising expenses? On the whole, the tax rate of the company's advertising expenses can be divided into two types, which can be seen from the relevant introduction materials summarized by the teacher, the print advertisements in general newspapers can be deducted at the rate of 4%, and the tax rate of other advertising expenses is calculated at the rate of 11%; For more related information, you are welcome to search and learn on this website.

Answer: Pre-tax deduction standard for advertising expenses:

Article 44 of the new "Regulations for the Implementation of the Enterprise Income Tax Law" stipulates that the eligible advertising expenses and business publicity expenses incurred by enterprises, unless otherwise stipulated by the competent financial and tax authorities, shall not exceed 15% of the sales (business) income of the current year, which shall be allowed to be deducted; The excess amount is allowed to be carried forward and deducted in subsequent tax years.

The notice of the State Administration of Taxation on printing and distributing the measures for pre-tax deduction of enterprise income tax (Guo Shui Fa [2000] No. 84) stipulates that the advertising expenses incurred by taxpayers in each tax year, unless otherwise stipulated in special industries, do not exceed 2% of the sales (business) income of filial piety, which can be deducted according to the facts; The excess amount can be carried forward to future tax years indefinitely. The business promotion expenses (including advertising expenses that have not passed**) incurred by taxpayers in each year can be deducted according to the facts within the range of sales operating income5. Advertising expenses for grain liquor shall not be deducted before tax.

If a taxpayer really needs to increase the deduction ratio of advertising expenses due to special reasons such as the characteristics of the industry, it must report to the State Administration of Taxation for approval. At the same time, it is also stipulated that the advertising expenses declared and deducted should be strictly separated from the sponsorship expenses. Taxpayers must meet the following conditions for deducting advertising expenses:

Advertisements are produced through specialized agencies approved by the Ministry of Industry and Commerce; The fees have been actually paid and the corresponding invoices have been obtained; through a certain ** spread;

What is the pre-tax deduction standard for advertising expenses and business promotion expenses?

15% of the sales (operating) income of the current year is deducted, and the excess part is carried forward to the future.

For example, the sales (business) income of this year is 1 million yuan, the actual advertising expenses are 200,000 yuan, according to the regulations, the deduction limit of advertising expenses is 150,000 yuan, and the difference between the actual occurrence and the limit is 50,000 yuan"Accumulated deductions carried forward to subsequent years"The increase is also in next year's report"Add: Add the accumulated carry-over deduction of Wang Meng from the previous year"of reductions.

30% of the sales (operating) income of the current year is deducted: cosmetics manufacturing, pharmaceutical manufacturing, beverage manufacturing (excluding alcohol manufacturing) and other enterprises.

Shall not be deducted from the bridge of caution: tobacco advertising fees of tobacco enterprises.

Policy basis: Article 44 of the Regulations for the Implementation of the Enterprise Income Tax Law.