Deduct 60% of the maximum amount or actual amount, whichever is lower.
Example: The taxpayer's sales income is 20 million yuan, and the maximum deduction limit of business entertainment expenses is 2000*5%= 10 (ten thousand yuan).
1. Suppose the actual business entertainment expense is 400,000 yuan: 40*60%=24 (ten thousand yuan), and the pre-tax deduction is 6,543,800 yuan, and the tax adjustment is 40- 10 = 30 (ten thousand yuan).
2. Assume that the actual business hospitality is 1.5 million yuan: 1.5 * 60% = 9 (ten thousand yuan), the pre-tax deduction is 1.5 million yuan, and the tax adjustment is 1.5-9 = 6 (ten thousand yuan).
If the tax authorities require proof materials, they should provide sufficient valid vouchers or materials to prove that the business entertainment expenses deducted by the enterprise really happened. Can not provide, shall not be deducted before tax. The contents of the certification materials include the amount of expenditure, business purpose, business relationship with entertainers, entertainment time and place, etc.
Extended data
The specific hospitality scope is as follows:
1, expenses for banquets or working meals due to the production and operation of enterprises;
2. Souvenirs given for the production and operation of the enterprise;
3, due to the needs of enterprise production and operation of tourist attractions and travel expenses;
4. Travel expenses incurred by business personnel due to the production and operation of the enterprise.
Calculation base for deduction of advertising fee, business entertainment fee and business publicity fee.
1. Main business income: selling goods, providing labor services, transferring the right to use assets, and building contracts;
2. Other business income: material sales income, agency fee income, charter income and others;
3. Regarded as sales revenue: revenue from self-produced commissioned products, revenue from disposal of non-monetary assets and other deemed sales revenue.
Baidu encyclopedia-business entertainment expenses