The food bill has changed! The two departments have sent a joint communication! Starting in november, the food bill is based on this
China accounting horizon network 2023. 11. 0506:30
We're not paying for the business dinner. How do we account for the private meal
Joint publication by the two departments
The state doesn't pay off without a menu
In recent days, the state council's national investment committee and the ministry of finance have jointly issued a circular on the publication of the commercial management provisions for state-owned enterprises。
The provisions of the circular concerning hospitality are as follows:
1. State-owned enterprises may not offer foods made of wild animals, or high-quality foods such as fins, oscillations, etc., at a maximum of $600 per person (with alcohol) per meal, or high-quality drinking water, at a price not exceeding $500 per 500 ml for white wine and 750 ml for red wine. The enterprise should establish control criteria in accordance with the actual situation in the area in which it is located and establish the corresponding implementation rules。
The number of persons receiving a meal may be equal to five, and the number of persons receiving a meal may not exceed one half in principle。
3. Business feasts for state-owned enterprises should be strictly regulated by the list system, reflecting, for example, hospitality, hospitality, etc. No reimbursement shall be made for expenses incurred in the absence of a list of offers。
While it is the state enterprise that is required in the regulation, what is the specific statement that [if a business dinner does not provide a list of offers, the costs are not reimbursed]? No menu to pay
Catering claims
Do you have to attach the menu
There was a real need: the enterprise income tax pre-reduction scheme (irs 84) had stipulated that reimbursement for meals should be accompanied by a menu, and if reimbursement for meals for hospitality required a list of the places to which the hospitality was intended, the level of the guest, his/her name。
But it was abolished in 2010:
Therefore, there is currently no mandatory tax requirement, as long as it is substantiated. However, if required, reference is made to the relevant reimbursement provisions of the enterprise。
Recording of meals
In general, catering charges are accounted for in operating hospitality, but not all catering costs are charged to operating hospitality! The method of accounting for the cost of meals in different operations varies, and we look at it separately。
Inclusion of “financing”
In accordance with regulation no. 15 of 2012 of the general state tax administration, operating hospitality expenses incurred by an enterprise in connection with the preparation of its activities during the preparation period are included in the start-up costs for the establishment of the enterprise at 60 per cent of the actual amount incurred。
A one-time amortization, or an option of amortization in instalments, may be made when the first income is realized, provided that the amortization period is not less than three years。
“operational hospitality”
(c) the cost of meals incurred by the enterprise for the purpose of producing and operating the business reasonably. They include meals, food, cigarettes, water, etc., paid for, business exchanges, outreach, public relations, and reception of visitors to meetings。
Inclusion of “staff benefits”
Food for employees of enterprises, work in the field or overtime, catering for employees provided by employees ' restaurants, etc. The employees in question are required to be employees of their own unit, and what is provided for other personnel is to be charged to the operating hospitality。
Inclusion of “staff education expenses”
The cost of meals incurred by employees of the enterprise in connection with their technical training and studies。
Inclusion of “union funds”
The costs of meals, food, water, etc. Incurred by employees of enterprises ' trade unions in connection with their participation in trade union activities。
Inclusion of “meeting costs”
It is noted that, in order to obtain tax deductions, the tax administration generally requires supporting material related to the meeting, including, but not limited to, the name, time and place of the meeting, the purpose of the meeting, the list of participants and the form for signing the meeting, conference-related material (agenda of the meeting, minutes of the meeting, photographs, impact information), conference invoices, payment lists, etc。
Inclusion of “travel”
An enterprise employee who travels on business will be covered by a meal subsidy or reimbursement for catering costs, and the cost of catering incurred during the staff member's mission shall be included in the travel expenses, bearing in mind that the cost of hospitality to clients while on mission shall be included separately under “operational hospitality”。
In addition, the enterprise should establish reasonable reimbursement or subsidy rates for the cost of meals while on mission。
Inclusion of “board of trustees”
The cost of meals incurred by the enterprise during the meeting of the board of directors is borne in mind that relevant information is provided as an annex. This includes, but is not limited to, the title, time, venue, purpose and roster of participants, value-added tax invoices for conference materials (agendas for meetings, discussions, leadership speeches), meeting site photographs or video materials, payment water bills, etc。
Inclusion of “film cost”
In the video industry, costs are charged to the cost of staff meals during the shoot and meals required as prop. Attention, however, should be paid to hospitality and to meals during off-shooting。
Operating hospitality
Tax risk points
When you're done with the accounting for the meal, let's see the business hospitality
You have to be careful with these problems
1. The inclusion of items that are part of the business hospitality fee in other costs will have an impact on enterprise income tax, value added tax and individual taxes。
It is assumed that a company sends a laptop to a customer, but does not account for business hospitality, and instead it is self-accounting, accounting for depreciation on a fixed asset basis that is deducted prior to tax and is normally offset by vat。
This situation makes it possible to detect problems through an inventory of physical assets. No deductions may be made from the amount of incoming taxes for non-reimbursable gifts of out-of-pocket goods, which are subject to deductions from the pre-income tax limit for hospitality and to the deduction of a surcharge。
2. The expenses not related to the production business activity are included in the operating hospitality costs associated with the production business activity, and the full amount is deducted by a cap。
Assuming that a company purchased sports equipment for the home of the company's general manager and spent $10,000 on fitness, the company included this expenditure in its accounting for business hospitality。
In fact, this cost is not related to the activity of the production business and cannot be deducted before income tax。
3. Acquisition of non-compliant business hospitality notes, which are not subject to pre-tax deductions。
It is assumed that a company will out-purchase three mobile phones and obtain a general ticket, but the invoice does not indicate the company's taxpayer identification number; or the invoice contains only the company's abbreviation and not the full name; or only the receipt of the collection。
The invoices described above are all non-compliant. Pre-tax deductions require proof of the real business of the company. If not provided, no pre-tax deduction is allowed。
4. The inclusion of non-operational hospitality in operational hospitality is not deductible。
It is assumed that the cost of meals in the company's quarterly meetings will be charged to the operating hospitality; and that the cost of meals for intra-corporate meals will be charged to the operating hospitality。
All of the above-mentioned invoices for meals are not included in the account for business hospitality。
No deduction may be made for business hospitality for which authenticity cannot be established。
If the tax authorities request supporting information, the company shall provide evidence of authenticity and relevance. It is not available and cannot be deducted before income tax。
For business hospitality, no tax is paid。
According to taxes regulation no. 50: enterprises offer gifts randomly to individuals outside their offices in their activities such as advertising, advertising, etc., and apply a full tax of 20 per cent to personal income tax on the proceeds of gifts received by individuals, in accordance with “other income” projects。
Enterprises present gifts to individuals outside their own offices at annual conferences, symposia, festivals and other events, and apply a full tax of 20 per cent to personal income tax for gifts received by individuals, in accordance with the “fortuitous gain” project。
