What are the expenses included in business entertainment expenses? Business entertainment expenses refer to the various expenses paid by enterprises for reception and entertainment in business management and other activities, mainly including business negotiations, product promotion, external liaison, and public relations. Expenses incurred for communication, conference reception, guest reception, etc., such as reception meals, reception cigarettes and tea, transportation expenses, etc. Regarding the scope of business entertainment expenses, neither the financial accounting system nor the old and new tax laws have given an accurate definition. In tax law enforcement practice, the specific scope of entertainment expenses is as follows: (1) Expenses for banquets or working meals due to the needs of the enterprise's production and operation; (2) Expenses for giving souvenirs due to the needs of the enterprise's production and operation; (3) Expenses incurred due to the enterprise's production and operation needs Expenses for visiting tourist attractions, transportation expenses and other expenses; (4) Travel expenses for business personnel incurred due to the needs of the enterprise’s production and operation. Tax laws stipulate that enterprises should strictly distinguish business entertainment expenses from conference fees, and must not include business entertainment expenses into conference fees. For travel expenses, meeting fees, and director fees incurred by taxpayers related to their business activities, if the competent tax authorities require the provision of supporting documents, they must provide legal certificates proving their authenticity, otherwise they shall not be deducted before tax. In the accounting of business entertainment expenses, they must be collected according to the prescribed accounts. If the expenditures belonging to the nature of business entertainment expenses are hidden in other accounts without following the regulations, pre-tax deductions are not allowed. Generally speaking, outsourced gifts that are given as gifts should be treated as business entertainment expenses. However, if the gifts are produced by the taxpayer themselves or processed through entrustment, and they have a marking and publicity effect on the company's image and products, they can also be treated as business promotion expenses. . At the same time, illegal expenditures such as kickbacks and bribes to customers must be strictly distinguished. These cannot be regarded as business entertainment expenses and should be directly subject to tax adjustments. Business entertainment expenses are limited to entertainment expenses related to the enterprise's production and operation activities. Employee benefits, employee rewards, commissions generated for the enterprise's product sales, and labor expenses paid to individuals that are not related to the enterprise's production and operation activities are not allowed to be included as entertainment expenses. . The "Measures for Pre-tax Deduction of Enterprise Income Tax" stipulates that reasonable travel expenses, meeting fees, and board of directors fees incurred by taxpayers related to business activities are regarded as "other deduction items" and are not treated as "entertainment expenses". According to this, business entertainment expenses are usually defined as expenses "directly related" to the production and operation activities of the enterprise, mainly including: catering, accommodation expenses (employees go out for meetings or business trips, the accommodation expenses incurred are "travel expenses"), cigarettes, food, Tea, gifts, normal entertainment activities, expenses incurred by arranging customer travel, etc. However, the above expenditures are not generalized. For example: Generally speaking, outsourced gifts that are used for giving should be regarded as business entertainment expenses. However, if the gifts are produced by the taxpayer themselves or processed through entrustment, they will have a marking and publicity effect on the company's image and products. Yes, it can also be used as business promotion expenses. At the same time, illegal expenditures such as kickbacks and bribes to customers must be strictly distinguished. These cannot be regarded as business entertainment expenses and should be directly subject to tax adjustments. Proof of Declaring Deduction of Business Entertainment Expenses Article 44 of the "Measures for Pre-Tax Deduction of Enterprise Income Tax" stipulates that if a taxpayer declares business entertainment expenses to be deducted and the competent tax authority requires the provision of supporting information, it shall provide sufficient valid certificates that can prove the authenticity or material. Not available and not tax deductible. The significance of this provision is multifaceted. First of all, for the first time, it clearly gives taxpayers the responsibility to self-prove the authenticity of the deductions reported. Although the tax authorities will generally agree with the deductions declared by taxpayers, if If the tax authorities discover that there are irregularities in business entertainment expenses, or discover untrue business entertainment expenses during tax inspections, the tax authorities have the right to require taxpayers to provide sufficient and valid vouchers or materials to prove the authenticity within a certain period; If the information is provided, the tax authorities may directly deny the deduction right of the taxpayer's declared business entertainment expenses without further inspection. Secondly, this regulation does not directly require taxpayers to provide all relevant information to the tax authorities every time they file a declaration, because doing so may cause a lot of trouble and workload to taxpayers, and at the same time, the tax authorities do not have the power to do so. to process this data. Third, this clause implies that during the retroactive period stipulated in the Collection and Administration Law, taxpayers must be responsible for the authenticity of the business entertainment expenses they declare and must prepare sufficient and effective supporting materials for the business entertainment expenses they declare. Although these The tax authorities may not require the materials to be provided, but once requested and the taxpayer is unable to provide them, the right to deduction will be lost. It should be noted that the essence of this clause is to ensure the authenticity of the business entertainment expenses. The relevant voucher materials only need to be sufficient and effective to prove the authenticity of the business entertainment expenses. It is not strictly required to provide a specific voucher. This is also Leave a certain amount of leeway for taxpayers' operations and management. For example, gifts given to customer salespersons cannot obtain specific vouchers such as invoices in most cases. However, as long as there is proof from the recipient of the gift, and the recipient of the gift does have a commercial relationship with the company, the authenticity of the expenditure can be recognized. sex. Generally speaking, tax laws do not force companies to require relevant personnel to sign when giving gifts to customers. However, if the tax authorities require proof of authenticity, companies can also provide evidence afterwards.

Tax adjustment for business entertainment expenses According to Article 46 of the "Measures for Pre-tax Deduction of Enterprise Income Tax", business entertainment expenses incurred by domestic-funded enterprise income tax taxpayers that are directly related to their business operations can be deducted within the following proportional range. : If the annual net sales (operating) income is 15 million yuan or less, it shall not exceed 5‰ of the net sales (operating) income; if the annual net sales (operating) income exceeds 15 million yuan, it shall not exceed this part 3‰ of net sales. The so-called operating income refers to various incomes obtained by taxpayers from production, operating activities and other related activities, including main business income and other business income. The above is the relevant content summarized by the editor. If you have relevant legal consultation or other matters that you do not understand, you can call the online lawyers of Hualv.com for answers. The professional knowledge of lawyers can help you.