According to the Regulations for the Implementation of the Enterprise Income Tax Law of People's Republic of China (PRC):
Forty-third business entertainment expenses related to production and business activities of enterprises shall be deducted according to 60% of the amount incurred, but the maximum amount shall not exceed 5‰ of the sales (business) income of the year.
The newly established company has no operating income, and the business entertainment expenses incurred are included in the enterprise preparation expenses according to 60% of the actual amount. The preparation period of an enterprise shall be deducted at one time in the year when it starts production and operation, or amortized according to long-term deferred expenses, which shall not be changed once it is selected.
According to Article 5 of the Announcement of State Taxation Administration of The People's Republic of China City, People's Republic of China (PRC) on Several Issues Concerning the Tax Treatment of Taxable Income from Enterprise Income Tax (People's Republic of China (PRC) State Taxation Administration of The People's Republic of China AnnouncementNo. 12), business entertainment expenses related to preparatory activities during the enterprise preparation period can be included in the enterprise preparation expenses according to 60% of the actual amount, and deducted before tax according to relevant regulations.
Extended data:
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) Expenses for banquets or working meals due to the production and operation of enterprises;
(two) the cost of giving souvenirs for the production and operation of the enterprise;
(3) Expenses such as tour fees and transportation fees incurred due to the production and operation of the enterprise;
(4) Travel expenses incurred by business personnel due to the production and operation of the enterprise.
The tax law stipulates that enterprises should strictly distinguish between business entertainment expenses and conference expenses, and must not crowd business entertainment expenses into conference expenses. Taxpayers' travel expenses, conference fees and directors' fees related to their business activities need to be certified by the competent tax authorities.
Can provide legal documents to prove its authenticity, otherwise it shall not be deducted before tax. 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.
Generally speaking, purchased gifts used for giving gifts should be regarded as business entertainment expenses. However, if the gift is made or commissioned by the taxpayer, and the image and products of the enterprise are marked and publicized, it can also be regarded as business promotion expenses.
At the same time, it is necessary to strictly distinguish between illegal expenses such as kickbacks and bribes to customers, which should not be treated as business entertainment expenses, but should be directly adjusted. Business entertainment expenses are limited to entertainment expenses related to the production and business activities of enterprises.
Employee benefits, employee rewards, commissions for selling products for enterprises, labor fees paid to individuals, etc. unrelated to the production and business activities of enterprises shall not be included in entertainment expenses.
Baidu Encyclopedia-Regulations for the Implementation of People's Republic of China (PRC) Enterprise Income Tax Law