We've seen this news lately:
Without exception, we find that a number of companies have also requested that no one with a menu be reimbursed。
Do you need a menu for reimbursement of catering expenses? How does the tax code provide? How do you account for the cost of meals? Can you deduct the tax? Can full pre-tax deductions be made? Do you want to pay a tax on personal food reimbursement? Let's make it clear today
The tax authorities are clear
There's no menu for food reimbursement
As can be seen from the above-mentioned responses from the tax administration, there is no express tax provision whereby the cost of meals must be covered by a menu。
The pre-employer income tax credit scheme (irs 84) provided for a menu to be attached to the reimbursement of the cost of meals, but the document has been repealed by decree no. 23 of the national tax administration authority. The current tax laws and regulations are no longer required, so the food and food bills are issued without the need for detailed menus。
How do you account for the meals
Can you deduct the tax
When it comes to meals, “business hospitality” comes to mind, but not all meals go to business hospitality。
Because of the nature of the business, the personnel reimbursed, etc., the cost of meals is different
Based on taxes according to article 36, the amount of taxes paid on loans purchased, catering services, day-to-day residential services and entertainment services may not be deducted from the amount of taxes paid。
Note: 3 per cent less 1 per cent for small-scale taxpayers until 2022. 4. 1; 2022. 4. 1-2022. 12. 31, 3 per cent tax exemption。
Thus, catering services are non-deductible items and are not subject to deductions for vat-specific invoices。
Note:
1. What about obtaining special invoices for catering
In order to prevent the formation of suspense tickets, it is recommended that an in-kind tax transfer be made after certification or that no ticking credit be made directly on the ticking platform。
What if the food and accommodation costs are on a ticket
After full certification credit, the portion of the charge for catering is transferred out of the charge or the amount of the effective tax is changed directly on the ticking platform, with only the deduction for accommodation and not the deduction for catering。
How is the pre-tax deduction for meals regulated
Can you deduct the full amount
In practice, not all meals can be deducted directly prior to tax, depending on the business, and depending on the method of deduction, we have prepared a map to facilitate better understanding of learning:
Note:
Accounting should not be accompanied by only one invoice, but also by supporting material supporting the authenticity of the catering costs。
1. The cost of meals is included in the costs of meetings, the board of trustees
The supporting documentation includes, but is not limited to, the title, time, venue, purpose and roster of participants, conference materials (agenda of the meeting, discussions, leadership speeches), vat invoices, live photographs or images of the meeting, payment water bills, etc。
2. Meals charged to travel
The supporting documentation includes, but is not limited to, complete approval procedures, invoices for catering, invoices for field trips, and lists of personnel and personnel matching the number of personnel sent。
3. Catering included in operating hospitality
The supporting documentation includes, but is not limited to, full clearance, details of hospitality, hospitality, value added tax invoices for catering。
4 food charged to operational advocacy
The supporting material includes, but is not limited to, full clearance procedures, promotional information, value added tax invoices for catering charges, etc。
5. Food to benefit
The supporting material includes, but is not limited to, full clearance procedures, value added tax invoices for catering charges, etc。
6. Food charge to employee education funds
The supporting material includes, but is not limited to, full clearance procedures, relevant training materials, value added tax invoices for catering fees, etc。
Distribution of meals to staff
Do you want to pay a tax
Note:
1. A staff member's meal, work meal and travel allowance is paid within the standard and is not subject to personal income tax
This standard is not specific, and the enterprise itself sets the standard for travel allowance according to the business situation。
2. Pay attention to the distinction between the lunch allowance and the late meal allowance:
Common food invoices
1. Catering services for vat-specific invoices
2. Catering services for general vat invoices
3. Catering services for vat electronic invoices
4. Catering services for general (roll) vat invoices
General purpose food invoices
6. General ration invoiced catering services
