First, the deduction ratio is used reasonably, that is to say, the new tax law adopts the method of two-end restriction on the pre-tax deduction of business entertainment expenses, that is, business entertainment expenses are only allowed to be charged before tax, and the maximum amount shall not exceed 5‰ of the sales (business) income of the year. This is mainly to prevent the extravagance and waste of conference fees, while controlling before things happen.
Second, understand that conference expenses are paid before tax, so understand that pre-tax deduction should be true and reasonable, because business entertainment expenses can be deducted before tax, and there must be sufficient and effective bills and materials to prove the authenticity and rationality of this part of the expenditure.
Third, the problem of double taxation in taxation can be solved by adjusting the sales income in this period in time so that the conference fees are charged before tax. The new Enterprise Income Tax Law of State Taxation Administration of The People's Republic of China City, People's Republic of China (PRC) (Guo [2009] No.202) clearly stipulates that when calculating the deduction limit of business entertainment expenses, advertising expenses and business promotion expenses, the sales (business) income shall include the deemed sales (business) income stipulated in the Regulations.
Fourth, we should also understand that it is a good method to correctly distinguish between expenses and conference expenses before tax, especially in practice, it is often difficult to distinguish between business entertainment expenses and conference expenses, travel expenses, advertising expenses and business promotion expenses, so the necessity of paying in advance is highlighted.
Therefore, we need to understand that conference fees are paid before tax, that is, we must understand that they cannot exceed the policy provisions, and we must distinguish taxes and fees according to reasonable pre-tax expenditures, and we must not take business entertainment fees for granted, otherwise it will bring unnecessary tax risks.