Tax-related accounting treatment of internal hospitality in catering industry

1. Simplified accounting treatment

Internal hospitality has no income and other economic benefits, which does not meet the conditions for income recognition, so income cannot be recognized, and related costs and expenses should be included in business hospitality. The simplified accounting entries are as follows:

Debit: management expenses-business entertainment expenses (cost price)

Loan: raw materials, salaries payable to employees, etc.

2. Handling of business tax

Article 3 of the current Detailed Rules for the Implementation of the Provisional Regulations on Business Tax stipulates: "The term" provision of services specified in the regulations, transfer of intangible assets or sale of real estate "as mentioned in Article 1 of the regulations refers to paid provision of services specified in the regulations and paid payment. However, employees employed by units or individual industrial and commercial households who provide services as stipulated in the regulations for their own units or employers are not included. The term "paid" as mentioned in the preceding paragraph refers to the acquisition of money, goods or other economic benefits ".

Article 5 of the Detailed Rules for the Implementation of the Provisional Regulations on Business Tax stipulates: "Taxpayers shall be deemed to have taxable behavior in any of the following circumstances: first, units or individuals give real estate or land use rights to other units or individuals free of charge; Second, the self-built behavior of a unit or individual who builds a new (hereinafter referred to as self-built) building and sells it; Third, other circumstances stipulated by the Ministry of Finance and State Taxation Administration of The People's Republic of China ".

Hospitalization in the hotel does not belong to the paid provision of labor services, and at the same time it does not belong to the sales scope regarded as business tax, so there is no need to pay business tax.

3. Treatment of enterprise income tax

For the scope of deemed sales, Article 25 of the Regulations for the Implementation of the Enterprise Income Tax Law stipulates that "if an enterprise exchanges non-monetary assets and uses goods, property and services for donation, debt repayment, sponsorship, fund-raising, advertising, samples, employee welfare or profit distribution, it shall be regarded as selling goods, transferring property or providing services, but the State Council's finance and taxation. The 9 listed items do not include social intercourse and entertainment, therefore, the income tax on hospitality in the hotel does not need to be regarded as sales.

However, if guests are given gifts during the hotel's internal entertainment, it is stipulated in the Notice of State Taxation Administration of The People's Republic of China on Handling Income Tax on Assets Disposed by Enterprises (Guo Shui Han (2118) No.828): "In the following cases, if an enterprise transfers assets to others, because the ownership of the assets has changed, it does not belong to the internal disposal assets, it should be regarded as sales to determine income according to regulations. First, it should be used for marketing or sales; Second, it is used for social intercourse; Third, it is used for employee rewards or benefits; The fourth is for dividend distribution; Fifth, it is used for foreign donations; Sixth, other uses that change the ownership of assets.

Enterprise income tax needs to be calculated and paid as sales. As for the determination of sales revenue, according to the provisions of Guo Shui Han (2118) No.828, "For the assets made by enterprises, the sales revenue shall be determined according to the external sales price of similar assets of enterprises in the same period; For assets that belong to outsourcing, the sales revenue can be determined according to the price at the time of purchase. "

when the tax bureau replied to the taxpayer's consultation, it thought that the food raw materials, drinks, tobacco and alcohol consumed in the business entertainment process should also be regarded as sales. I think it is inappropriate. Since it is a business entertainment, there are employees and customers in our company, how can we distinguish how much the customers have eaten and how much the employees of our company have eaten? Can we let the tax bureau verify it? If this is to be regarded as sales, then by extension, do the employees and customers of this enterprise who participate in business entertainment have to pay a tax on the free meals they enjoy? No tax bureau has asked for this yet, has it? Of course, raw materials and labor costs included in business entertainment expenses should be deducted before tax according to the business entertainment expenses limit.

if we eat in our own hotel and entertain guests without charge, should it be regarded as sales?

treated as sales.

debit: management expenses

credit: operating income.