In the normal operation of enterprises, it is inevitable that various business entertainment expenses will occur. For example, the expenses incurred by entertaining customers or giving gifts to customers, then how to make accounting entries for hospitality reimbursement of management departments? Can the input tax be deducted? Let's take a look at it with the Deep Space Network.

Manage hospitality reimbursement entry processing

Borrow: management expenses-business entertainment expenses

Loan: bank deposit or cash on hand.

Can business entertainment expenses be deducted from input tax?

A: Business entertainment expenses cannot be deducted from the input. It refers to some necessary expenses actually incurred in the production and operation of enterprises, which is one of the necessary costs of normal business activities of enterprises and belongs to the category of personal consumption. Therefore, business entertainment expenses cannot be deducted from the input tax.

Business entertainment expenses mainly account for banquets, entertainment or working meals; The cost of sending souvenirs and gifts to guests, and the travel expenses and accommodation expenses incurred by external business relations personnel to visit the company.

Tax adjustment of business entertainment expenses and matters needing attention

Introduction of business hospitality

Business entertainment expenses refer to the entertainment expenses paid by the enterprise for the reasonable needs of business operation, such as banquets, entertainment or working meals, which belong to the accounting scope of business entertainment expenses. Business entertainment expenses can be deducted by 60% of the amount incurred. It should be noted that the maximum shall not exceed 5‰ of the sales (business) income of the current year.

For the business entertainment expenses declared and deducted by enterprises, the tax authorities shall provide corresponding valid vouchers or materials if they require proof materials. If it cannot be provided, pre-tax deduction is not allowed.

The supporting materials provided include the following contents:

1, entertainment time and place;

2. Commercial purpose;

3. Expenditure amount;

4. Business relationship with the host.

Note that not all catering expenses are recorded as business entertainment expenses. For example, meals incurred by employees on business trips can be included in travel expenses; When employees go out for training, the meal expenses incurred during the training period can be included in the employee education funds.