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How should enterprises collect expenses correctly, so as to pay less "injustice tax"?

Released Date: Feb 10,2021 Article Source: HUANZE
Enterprises should accurately sum up the expenses and collect the expenses correctly to avoid paying a lot of "unfair tax".

Enterprises should accurately sum up the expenses and collect the expenses correctly to avoid paying a lot of "unfair tax".

E.g. The most representative expenses are: business entertainment expenses, now many business accountants will consider: food and beverage expenses=Business entertainment expenses. This is actually wrong. So how to accurately divide business entertainment expenses? 

Business entertainment expenses are business expenses often incurred by enterprises for the purpose of contacting business or promotion and dealing with social relations, according to the amount incurred60%The pre-tax deduction shall not exceed the sales (business) income of the current year5‰More than5‰Part of the full amount is not deductible before tax.

Business entertainment expenses mainly refer to expenses related to banquets, souvenirs, travel and hospitality incurred for business needs. These expenses are incurred when contacting with external personnel of the company. If the expenses are incurred to internal employees of the company, they should not be included in the business entertainment expenses.

In addition, the catering expenses generated by the training organized by the company shall be included in the training expenses; The catering expenses incurred by the company personnel on business trips shall be included in the travel expenses; The meal expense incurred during the meeting organized by the company should be included in the meeting expense account, rather than blindly include the meal invoice into the business entertainment expense. Therefore, professional financial personnel and tax agents can help companies pay taxes more accurately.


How should enterprises collect expenses correctly, so as to pay less

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