Business first, meals later. Company meal accounting treatment, seemingly simple, in fact, not easy. Today we are going to learn about the meal cost under different circumstances and different accounting treatment.

1. The meal expense generated by the enterprise for the needs of production and business operation shall be listed as "entertainment expense" in the accounting. 

Accounting treatment 

Business hospitality expenses incurred by the enterprise shall be recorded as "administrative expenses.-Business entertainment expenses ". 

Borrow: Administrative expenses-Business entertainment expenses
        Loan: cash on hand/Bank deposit

Tax treatment 

"Regulations on the Implementation of the Enterprise Income Tax Law" : The business entertainment expenses incurred by an enterprise in connection with production and business activities shall be in accordance with the amount incurred60%The deduction shall not exceed the sales (business) income of the current year5‰.

Ii. Business publicity expenses 

Meal expenses incurred in the process of sales business negotiation and exhibition 

Accounting treatment 

For example, the catering expenses incurred in the process of sales business negotiation and exhibition belong to"Business publicity expenses". 

Borrow: Selling expenses-Business publicity expenses
        Loan: cash on hand     

Tax treatment 

Unless otherwise stipulated by the competent financial and tax authorities under The State Council, the qualified advertising and publicity expenses incurred by an enterprise are allowed to be based on the total business revenue15%Deduct before corporate income tax. The excess is allowed to be carried forward for deduction in subsequent tax years. 

3. Employee welfare expenses 

Staff dinner party, field work or overtime meals, staff canteen dining, overtime dinner, listed in the accounting "staff welfare expenses". 

Accounting treatment 

Such as: enterprise year-end or other activities organized dinner, its expenses should be recorded in the "administrative expenses-Employee welfare expenses "subject. 

Borrow: Administrative expenses-Employee welfare expenses
        Loan: cash on hand/Bank deposit

Tax treatment 

According to Article 40 of the Regulations for the Implementation of the Enterprise Income Tax Law, the welfare expenses incurred by an enterprise shall not exceed the total amount of wages and salaries14%Is allowed to be deducted. Allowed in accordance with the total amount of wages14%Deduct before corporate income tax. 

Four, travel expenses 

Employees on business trips, meals in the standard, accounting listed in the "travel expenses". 

Accounting treatment 

Reasonable travel expenses incurred by employees of the enterprise shall be recorded as "administrative expenses"-Travel expenses "account, specific accounting treatment is as follows: 

Administrative department 

Borrow: Administrative expenses-Travel expense 

 Loan: cash on hand/Bank deposit

Sales department 

Borrow: Selling expenses-Travel expense
        Loan: cash on hand/Bank deposit

Tax treatment 

All deductions are allowed before corporate income tax. 

In fact, as for the expenditure of meals, there are other situations in the actual business process of the company, we will not do more explanation, specific problem specific analysis, to achieve a reasonable division, so as not only to reasonable tax avoidance, but also to avoid tax risks.

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