Article 50 of the Accounting System for Enterprises (Caishui [2000] No.25) stipulates that, except for the purchase and construction of fixed assets, all expenses incurred during the preparation period shall be collected in the long-term deferred expenses and included in the profits and losses of the month when the enterprise starts production and operation.
Organization expenses refer to the expenses incurred during the period from the date of approval of the establishment to the start of production and operation (including trial production and trial operation). Including staff salaries, office expenses, training fees, travel expenses, printing fees, registration fees, and exchange gains and losses and interest expenses that are not included in the purchase and construction costs of fixed assets and intangible assets. ?
Article 70 of the regulations for the implementation of the new income tax law, which came into effect on June 65438+ 10/2008, stipulates that the expenditure of long-term deferred expenses shall be amortized in installments from the month following the expenditure, and the amortization period shall not be less than 3 years. Although the implementation regulations have no specific provisions on the start-up expenses, the start-up expenses should be of a long-term expected nature. ?
Strictly speaking, accounting treatment should be carried out in accordance with the enterprise accounting system, and tax payment should be adjusted in accordance with the income tax law.
Therefore, taxpayers should amortize in one lump sum in the month when they start production and operation, but the taxable income should be increased on the basis of accounting profits when they declare income tax in that year, and reduced accordingly when they declare in subsequent years.
Extended data:
The accounting treatment of organization expenses has the following characteristics:
1, which changed the previous practice of taking the start-up expenses as assets. Organization expenses are no longer "long-term deferred expenses" or "deferred assets", but direct expenses.
2. The new balance sheet does not reflect the "start-up expenses" item, that is, the information of start-up expenses is no longer disclosed.
3. Clearly stipulate that the start-up expenses shall be accounted for in the subject of "management expenses".
4. The accounting scope of the start-up expenses is unified, that is, the start-up expenses include the salary, office expenses, training fees, travel expenses, printing fees, registration fees and borrowing costs that are not included in the cost of fixed assets.
The start-up expenses of an enterprise refer to the expenses incurred by the enterprise in the initial period, that is, the preparation period, including personnel salaries, office expenses, training fees, travel expenses, printing fees, registration fees, exchange gains and losses, interest and other expenses that are not included in the purchase and construction costs of fixed assets and intangible assets.
Specifically, the period of organization expenses accounting refers to all expenses from the date of preparation to the date of formal production and operation (except fixed assets and intangible assets investment, which are not expenses). In the new accounting standards, the account of "organization expenses" has been cancelled, and it has been included in the account of "long-term deferred expenses", which can be reflected in the following detailed accounts.
The current accounting standards require that the start-up expenses should be transferred to the period expenses in one lump sum in the month when the enterprise starts to operate, which is generally called "management expenses". The specific treatment method is as follows:
When the start-up expenses of the enterprise occur:
Borrow: Long-term deferred expenses-organization expenses XXX
Loan: bank deposit (cash, etc.). )XXX
In the month when the enterprise starts to operate, it will be transferred to the management expense account:?
Borrow: management fee
Loan: Long-term deferred expenses-organization expenses
However, it should be noted that the accounting treatment in accounting standards has always been consistent with the tax law, but now it is not consistent with the tax law on the recognition of organization expenses as profits and losses.
According to the provisions of the tax law, the start-up expenses incurred by an enterprise during the preparation period shall be shared over a period of not less than five years from the next month (that is, the next month) when it starts production and operation, and shall be included in the taxable income of each period by stages.
Therefore, in accounting treatment, as an accountant, the usual treatment should be to amortize the start-up expenses of the enterprise in full at one time in accordance with the provisions of the accounting standards for business enterprises (such as the above entries). However, when calculating the income tax return, the taxable income of the enterprise should be adjusted on the basis of accounting profits according to the provisions of the tax law.
Expenditure not included in the scope of organization expenses
1, expenses incurred in acquiring various assets. Including transportation costs, installation costs, insurance premiums and related labor costs incurred during the purchase and construction of fixed assets and intangible assets.
2, the provisions should be borne by all parties to the investment costs. Such as travel expenses, consulting fees, hospitality, etc. Expenses incurred by investors for investigation and negotiation to set up enterprises. The China Municipal Government also stipulates that the entertainment expenses incurred by inviting foreign businessmen to negotiate business during the negotiation of Sino-foreign joint ventures shall not be listed as the start-up expenses of the enterprises, and shall be borne by the invited enterprises.
3. Expenditures such as fixed assets and intangible assets purchased and built for training employees shall not be listed as organization expenses.
4. The interest paid by investors to raise funds by themselves with invested capital is not included in the start-up expenses, and shall be borne by investors themselves.
5. The handling fee paid for depositing foreign currency cash in the bank shall be borne by the investor.
References:
Baidu Encyclopedia-Organization Fee