Knowledge expansion
Business entertainment expenses are the entertainment expenses paid by enterprises for the reasonable needs of business operation. Before this financial system reform, there was no uniform standard for business entertainment expenses of various enterprises in China. Except for the standard of business entertainment expenses in the income tax law of foreign-invested enterprises, there are basically no standards for other types of enterprises (1Interim Provisions on Several Issues of Financial Management of Joint-stock Pilot Enterprises promulgated in June 1992 adopted the standards of foreign-invested enterprises).
The business entertainment expenses of state-owned enterprises are determined by the financial departments of provinces, autonomous regions and municipalities directly under the Central Government according to the different conditions of the production and operation scale of enterprises, and the entertainment expenses of enterprises within the limit are reimbursed and audited at the end of the year.
This management mode is not conducive to creating an external environment of equal competition for all kinds of enterprises, nor to the transformation of government functions and strengthening financial supervision. This financial reform has unified the business hospitality standards of various enterprises.
concept
According to the current tax law, Article 43 of the implementing regulations clearly stipulates that the business entertainment expenses incurred by enterprises related to production and business activities shall be deducted according to 60% of the amount incurred, and the maximum amount shall not exceed 5‰ (five thousandths) of the sales (business) income of the year.
Business entertainment is a regular business for enterprises to contact business or promote sales and deal with social relations. The implementation regulations of the new enterprise income tax law have changed the previous deduction ratio. As a reasonable expense for the production and operation of an enterprise, business entertainment expenses can be truthfully charged according to the accounting system, and the tax law stipulates that it can be deducted before income tax within a certain proportion, and the part that exceeds the standard cannot be deducted.
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. Personal entertainment expenses and hobby expenses of enterprise investors or employees shall not be declared and deducted as business entertainment expenses.