Business entertainment expenses are the entertainment expenses paid by enterprises for the reasonable needs of business operation. The current tax law stipulates that the deduction standard is: the business entertainment expenses related to the production and business activities of the enterprise 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 current year. 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 can be deducted before income tax in a certain proportion according to the provisions of the tax law, and the part exceeding 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.
Allowable deduction of other enterprise income tax:
1, the employee welfare expenses incurred by the enterprise, which do not exceed 14% of the total wages and salaries, are allowed to be deducted.
2. The amount of trade union funds allocated by the enterprise that does not exceed 2% of the total wages is allowed to be deducted.
3. Unless otherwise stipulated by the competent departments of finance and taxation of the State Council, the employee education expenditure incurred by the enterprise shall not exceed the total wages and salaries.
2.5% is allowed to be deducted; The excess shall be allowed to be carried forward and deducted in future tax years.
4. Unless otherwise stipulated by the competent department of finance and taxation of the State Council, the eligible advertising expenses and business promotion expenses incurred by the enterprise do not exceed 15% of the sales (business) income of the current year, and are allowed to be deducted; The excess shall be allowed to be carried forward and deducted in future tax years.
5, enterprises in accordance with the relevant provisions of laws and administrative regulations to extract special funds for environmental protection, ecological restoration, etc. , is allowed to deduct. If the above-mentioned special funds change after extraction, they shall not be deducted.
6, enterprises to participate in property insurance, insurance premiums paid in accordance with the provisions, allowed to deduct.
To sum up, it's Bian Xiao's answer to the standard of deduction of corporate hospitality, and I hope it will help you.
legal ground
Regulations of People's Republic of China (PRC) Municipality on the Implementation of Enterprise Income Tax Law
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.