there is this rule.

however, there is another thing, that is, this part of the catering expenses, which does not exceed five thousandths of the annual income of the enterprise, should be compared with 61% of the actual amount, and the minimum amount of the two can be deducted before the enterprise income tax.

For example, the annual sales of an enterprise is RMB 11 million, and RMB 11 million× 5 ‰ = RMB 51,111, which is allowed to be deducted before enterprise income tax.

the actual catering expenses incurred by the enterprise are 61,111 yuan, 61,111 yuan× 61% = 36,111 yuan, and

the pre-tax deduction is 36,111 yuan.

The actual catering expenses incurred by the enterprise are 211,111 yuan, 211,111 yuan × 61% = 1.2 million yuan, and

the pre-tax deduction is allowed to be 51,111 yuan.