Domestic-funded Enterprises
For enterprises, business entertainment expenses directly related to production and operation can be treated as deductible expenses if the taxpayer provides genuine and valid vouchers or documents within the following limits. Any amount exceeding these standards cannot be deducted before tax: If the annual net sales (operating) revenue is 15 million yuan or less, the deduction shall not exceed 5‰ of the net sales (operating) revenue; For the portion of the annual net sales (operating) revenue exceeding 15 million yuan, the deduction shall not exceed 3‰ of that portion's net sales revenue. The net sales (operating) revenue refers to the income obtained by the taxpayer from engaging in production and business activities, minus various expenditures such as sales discounts, sales allowances, and sales returns. This includes basic business income and other business incomes.
The pre-tax deduction standard for business entertainment expenses can be calculated by segmenting the income or using a simplified method. The formula for the simplified calculation is: Pre-tax deduction standard for business entertainment expenses = Net sales (operating) revenue × Deduction ratio of the corresponding level + Quick deduction number of the corresponding level.
For example, a limited company achieved sales revenue of 16 million yuan from January to December, earned 300,000 yuan from transferring a technology, and gained 1 million yuan from transferring intangible assets and fixed assets. It also received rental and lending income...