Corporate hospitality tax regulations

The company's hospitality tax provisions are: deducted according to 60% of the amount incurred, but the maximum amount shall not exceed 5% of the sales revenue of the current year. The new "Regulations for the Implementation of the Enterprise Income Tax Law" has changed the previous deduction ratio. As a reasonable cost of enterprise production and operation, the accounting system stipulates that it can be deducted according to the facts, and the tax law stipulates that it can be deducted before tax within a certain proportion, and the part that exceeds the standard cannot be deducted.

In terms of the scope of business hospitality, neither the financial accounting system nor the old and new tax laws have given an accurate definition. In the practice of tax law enforcement, the specific scope of hospitality is as follows:

(1) Banquet or working meal expenses required by the production and operation of the enterprise.

(2) souvenirs that enterprises need to give away in production and operation.

(three) the cost of scenic spots, transportation costs and other expenses incurred by the production and operation of enterprises. (4) Travel expenses incurred by business personnel due to the production and operation of the enterprise.

The tax law stipulates. Enterprises shall strictly distinguish between business entertainment expenses and conference expenses, and shall not crowd business entertainment expenses into conference expenses. Taxpayers' travel expenses and conference fees related to their business activities, if required by the tax authorities to provide proof materials, should be able to provide legal documents to prove their authenticity, otherwise they shall not be deducted before tax. Proof materials of conference fees include time, place, participants, content, purpose, fee standard, payment voucher, etc. When accounting for business entertainment expenses, it should be collected according to the prescribed subjects. Expenses that belong to business entertainment expenses and are hidden in other subjects according to regulations are not allowed to be deducted before tax.

Legal basis:

People's Republic of China (PRC) tax collection management law

Article 1 This Law is formulated with a view to strengthening the administration of tax collection, standardizing tax collection, safeguarding national tax revenue, protecting the legitimate rights and interests of taxpayers and promoting economic and social development.

Article 2 This Law is applicable to the collection and management of various taxes collected by tax authorities according to law.

Article 3. The collection and suspension of taxes, as well as the reduction, exemption, refund and overdue tax, shall be implemented in accordance with the provisions of the law; Where the State Council is authorized by law, it shall be implemented in accordance with the administrative regulations formulated by the State Council. No organ, unit or individual may, in violation of the provisions of laws and administrative regulations, arbitrarily make decisions on tax collection, suspension, tax reduction, exemption, tax refund, overdue tax and other decisions inconsistent with tax laws and administrative regulations.

Article 4 Units and individuals that are obligated to pay taxes according to laws and administrative regulations are taxpayers.