1, the nature of different: hospitality to consumption, such as food and beverage-based, advertising and business promotion to the publicity of the main;

2, the object of different: hospitality generally have a specific object, advertising and business promotion of the object with unspecificity

3, income tax levied on different: hospitality expenses at 60% of the business revenue of no more than 0.5%, more than the portion of the business revenue shall not be expensed in the Later years, advertising and publicity expenses do not exceed 15% of operating income, the excess can be charged in future years, up to 5 years;

4, the media are different: hospitality does not require a specific medium, advertising and publicity expenses, especially advertising, is approved by the business sector engaged in the advertising business of the professional sector to produce.

Extended information:

1, for enterprises engaged in the equity investment business (including the headquarters of the group companies, venture capital enterprises, etc.), its dividends, bonuses and income from equity transfers distributed from investee companies, you can calculate the prescribed percentage of business hospitality deduction limit.

2. Business hospitality expenses incurred by an enterprise during the preparatory period in connection with preparatory activities can be included in the preparatory expenses at 60% of the actual amount incurred.

3. Starting from January 1, 2016 and ending on December 31, 2020, the expenditure on advertising and business promotion costs incurred by enterprises in the manufacture or sale of cosmetics, pharmaceutical manufacturing and beverage manufacturing (excluding the manufacturing of alcoholic beverages) shall be allowed to be deducted to the extent that the expenditure does not exceed 30% of the sales (operating) revenue of the year; the excess shall be allowed to be carried forward and deducted in the subsequent tax years.

4. For the affiliated enterprises that have signed the agreement on the sharing of advertising and business promotion expenses (hereinafter referred to as the sharing agreement)

(1), one of the parties to the pre-tax deduction of the current year's sales (operating) income within the limit of the proportion of advertising and business promotion expenses can be deducted in the enterprise, or part or all of them can be pooled under the sharing agreement for deduction to the other party.

(2) The other party may exclude the advertising and business promotion expenses pooled to the enterprise in accordance with the above method when calculating the pre-tax deduction limit for the enterprise's advertising and business promotion expenses.

General Administration of Taxation - Circular on Certain Tax Issues Concerning the Implementation of the Enterprise Income Tax Law

General Administration of Taxation - Circular on Certain Tax Issues Concerning the Implementation of the Enterprise Income Tax Law

General Administration of Taxation - Circular on the Implementation of the Enterprise Income Tax Law -Circular on the Policy of Pre-tax Deduction of Advertising Fees and Business Propaganda Expenditures

State Administration of Taxation - Announcement on Certain Tax Treatment Issues Concerning Taxable Income for Enterprise Income Tax