1. Reimbursement standard for business entertainment expenses:

The allowable reimbursement amount for business entertainment expenses is a standard set by your company internally, which is based on the actual business needs. Different regions, different German regions and different industries have different specific amounts.

as a reasonable expense for the production and operation of an enterprise, business entertainment expenses can be charged according to the facts according to the accounting system, and can be deducted before income tax according to the tax law within a certain proportion, and the part exceeding the standard cannot be deducted. Personal entertainment expenses and hobby expenses of enterprise investors or employees shall not be declared and deducted as business entertainment expenses.

2. Deduction limit of business entertainment expenses:

According to the tax law, the business entertainment expenses related to production and business activities of an enterprise shall be deducted according to 61% of the actual amount, but the maximum amount shall not exceed 5‰ of the sales (business) income of the current year. That is to say, these can only be deducted before tax, but the amount of reimbursement depends on your unit's financial system, as long as the income tax reimbursed is adjusted before tax.

when an enterprise declares business entertainment expenses, the tax authorities require the company to provide valid vouchers or materials to prove the real business. Can not provide, shall not be deducted before tax. The contents of the certification materials include the actual expenditure amount, business purpose, business relationship with the entertained person, time and place of entertainment, etc.

for example, an enterprise's annual sales revenue is RMB 11 million, and its annual entertainment expenses are RMB 211,111. When the income tax is settled at the end of the year, it will be RMB 121,111 according to 61% of the entertainment expenses, and then RMB 51,111 according to 1.5% of the sales revenue, so the company can only deduct RMB 51,111 for business entertainment expenses before tax.

Extended information:

Differences between business hospitality accounting and tax law treatment

1. Business hospitality related to production and operation in the daily operation of an enterprise can be included in the corresponding costs according to accounting regulations, and the tax law stipulates that it should be deducted according to a certain proportion, and the resulting differences will be adjusted when the enterprise's year-end income tax is settled.

2. The business entertainment expenses incurred by the enterprise during the preparation period are included in the start-up expenses according to the facts. The accounting system stipulates that the profit and loss of the month of production and operation shall be included in the profit and loss of the month of production and operation at one time. The tax law stipulates that it will be deducted by stages within a period of not less than 5 years from the second month of the month in which production and operation are started, thus forming timing difference to make tax adjustment when the enterprise's year-end income tax is settled.

3. The tax base accounting for business entertainment expenses is different from the tax law. The allowable deduction base in accounting is the income obtained by taxpayers engaged in production and business activities. The tax law stipulates that the sum of main business income, other business income and deemed sales income is the allowable deduction base.

Reference: Baidu Encyclopedia-Business Entertainment.