When the start-up expenses occur (at present, most enterprises still implement & gt and>, so we still use the long-term deferred expenses-start-up expenses, and I don't need the management expenses-start-up expenses):
Borrow: Long-term deferred expenses-organization expenses
Loans: bank deposits, cash, etc.
When the start-up expenses are amortized in one lump sum (or amortized in three or five years) in the month when production and operation are started:
Borrow: amortization of management expenses-organization expenses
Loan: Long-term deferred expenses-organization expenses
The handling of organization expenses (preparatory expenses) can be understood from the following three points:
1, the start-up (preparatory) office expenses can be deducted in one lump sum in the year of start-up;
2. Amortize by installments within a period of not less than three years (which may be three, four, five or six years) from the month following the expenditure, but once selected, it shall not be changed.
3. The choice of specific treatment is left to the enterprise (I will send you the news about the tax planning of start-up expenses for your reference).
Attachment: Guoshuihan [2009] No.98: Connection of some tax matters before the implementation of the new income tax law.
Six, about the account opening (preparation) fee
Before the merger of the "two laws", the "Implementation Rules" for the income tax of domestic and foreign-funded enterprises stipulated that the start-up expenses incurred during the preparation period should be deducted by stages within a period of not less than five years from the next month of the month when production and operation began. The treatment of organization expenses in the new tax law is not clear. There are two opinions before: one is that it should conform to the accounting standards and accounting system, that is, it should be deducted at one time from the current production and operation period; Another view is that it should be treated as a long-term amortization expense, that is, it should be amortized in installments within a period of not less than 3 years from the month following the month when the expenditure occurs. The above opinions have always been controversial in practice. At the end of the document, it is clear that the opening (preparation) expenses in the new tax law are not clearly listed as long-term deferred expenses, and enterprises can deduct them in one lump sum in the year of opening, or deal with them in accordance with the provisions of the new tax law on long-term deferred expenses, but once selected, they cannot be changed. The undistributed start-up expenses of an enterprise one year before the implementation of the new tax law can also be handled according to the above provisions. The document actually agrees with the first two methods and leaves the choice of specific treatment to enterprises.
Organization expenses refer to the expenses incurred by an enterprise during the preparation period, including personnel salaries, office expenses, training fees, travel expenses, printing fees, registration fees, exchange gains and losses and interest that are not included in the cost of fixed assets and intangible assets. The preparation period refers to the period from the date when the enterprise is approved to start production and operation (including trial production and trial operation). The start-up expenses incurred by an enterprise during the preparation period shall be deducted by stages within a period of not less than 5 years from the month following the start of production and operation. The fiscal and taxation business of the start-up expenses in the preparation period is as follows.
In the Accounting System for Business Enterprises and the Accounting System for Small Enterprises, the start-up expenses are included in the long-term deferred expenses, while in the Accounting Standards for Business Enterprises, the start-up expenses are included in the management expenses. From the accounting content and main accounting treatment of "management expenses" in the appendix "Accounting subjects and main accounting treatment" of "Accounting Standards for Business Enterprises-Application Guide" (Cai Shui [2006] 18), it can be seen that the organization expenses are no longer regarded as "long-term deferred expenses" or "deferred assets" in accounting treatment, but can be directly treated as expenses.
Article 13 of the Enterprise Income Tax Law stipulates that when calculating taxable income, the following expenses incurred by the enterprise shall be amortized as long-term deferred expenses in accordance with the provisions and allowed to be deducted: 1. Fixed assets renovation expenses that have been fully depreciated; 2. Expenditure on renovation of rented fixed assets; 3. Expenditure on major repair of fixed assets; 4. Other expenses that should be regarded as long-term deferred expenses. It can be seen that long-term prepaid expenses do not include start-up expenses. Therefore, the author believes that the new tax law does not list the start-up expenses as long-term deferred expenses, in order to be consistent with accounting standards and accounting systems, that is, enterprises can deduct them from the current production and operation period. Although the new income tax law does not specify the relevant policies for pre-tax deduction of organization expenses, it does not mean that there is no pre-tax deduction limit for organization expenses.
The Notice of State Taxation Administration of The People's Republic of China on the Connection of Some Tax Matters of Enterprise Income Tax (Guo [2009] No.98) clarifies that the new tax law does not explicitly list the start-up expenses as long-term prepaid expenses, and the enterprise can deduct them in one lump sum on the opening day, or deal with them in accordance with the provisions of the new tax law on the treatment of long-term prepaid expenses, but once selected, they shall not be changed. In other words, under the new tax law, the start-up expenses of enterprises can be deducted at one time or amortized in installments. Of course, before the implementation of the new tax law, the organization expenses of previous years that have not been amortized by enterprises can also be handled according to the above provisions. That is, if the enterprise has previously included the start-up expenses in the long-term deferred expenses, it can amortize the unamortized part into the 2008 annual expenses at one time, or it can be handled according to the needs of the enterprise and the provisions of the new tax law on the treatment of long-term deferred expenses. However, it should be noted that Article 70 of the Regulations for the Implementation of the Enterprise Income Tax Law stipulates that other expenses mentioned in Item 4 of Article 13 of the Enterprise Income Tax Law that should be regarded as long-term deferred expenses shall be amortized in installments from the month following the occurrence of the expenses, and the amortization period shall not be less than 3 years.
In practice, enterprises should pay attention to the fact that all expenses incurred during the preparation period cannot be included in the scope of organization expenses. Expenses that cannot be included in the start-up expenses are: 1. Expenses incurred in acquiring various assets, transportation fees, installation fees and insurance fees paid for the purchase and construction of fixed assets and intangible assets, and wages of employees incurred during the purchase and construction; 2. Expenses that should be borne by investors according to regulations, such as travel expenses, consulting fees, entertainment fees and other expenses incurred when investors conduct investigations for the preparatory enterprises; 3. Expenditure on fixed assets and intangible assets purchased and built for training employees; 4. The interest paid by investors to raise funds by investing their own capital is not included in the start-up expenses, and shall be borne by the investors themselves; 5. The handling fee paid for depositing foreign currency cash in the bank shall be borne by the investor. If the start-up expenses include business entertainment expenses, advertising expenses and business publicity expenses, they should be handled in accordance with the provisions of the tax law, that is, the premise of pre-tax deduction of these two expenses must be sales (business) income. Entertainment expenses and advertising expenses without sales (business) income can only be carried forward to the next year.