tax saving of entertainment expenses

Range of expense account spending

Expense account spending are times when it becomes payment in full expense depending upon expenditure method

Expense account spending with respect to tax law, expense account spending and entertainment spending, in secret expense other costs, hospitality, entertainment, consolation and the exchange corporate body for that customer and the supplyer vendor in addition the person etc who has relationship at business in addition it is the cost which is expended because of the behavior which is similar in these.However, you exclude the cost which puts out next from expense account spending and the like.

1. The cost which is usually required because it is game, entertainment meeting and travelling etc which are done exclusively for consoling the employee
2. The cost which is required because it is eating and drinking and the like (those exclusively for the official and the employee etc of the corporate body are excluded) being, that dividing the amount which is expended at the number of people who participated in eating and drinking and the like the cost where the amount which it calculated is 5,000 Yen or less
3. The calendar and the log, the cost which is usually required in order to give the goods for announcement such as Japanese fan, inside wa and towel
4. Pertaining to meeting, the brown snack, the lunch in addition the cost which is usually required in order to provide the food and drink which is similar in these
5. The round table talk which is done in order to compile publication or broadcast program such as newspaper magazine in addition for collecting the article, or the cost which is usually required for the collection of data for broadcasting

Expense account spending does not become payment in full cost!

Sort of everyone coral knowing, the expense account spending which corporate body expends as a general rule does not become payment in full cost.as a practical matter to say whether, it is also available in japan is our year-end gift give a midyear convention, shuseki can not deny the elements of meaning in human relations lubricating oil. just because the cost is not entertainment expenses, to mean not spending does not go.

there, in the tax law is about the number of japanese companies99%consideration to small and medium enterprises account for, capital1has established the following special case for small and medium enterprises billion. the case of small and medium enterprises, 600million yen (prior to the amendment400million yen) entertainment expenses for the following90%and expenses, 10%it is not only cost and. this thing, in terms of tax law disallowance of entertainment expenses this is called. if you are not going to cost, well, such as tax will not be deductible there should be a thing was heard to say and.

capital of year-end1disallowance amount of the corporation is less than one hundred million yen,
annual expenditure amount of entertainment expenses,600ten thousand yen or less is, amount of spending entertainment expenses×10%

annual expenditure amount of entertainment expenses,600if more than ten thousand yen is, (amount of spending entertainment expenses?600million yen) +600million yen×10%

caution: that fiscal year1if less than a year, 600the annualized standard deduction limit of ten thousand yen.

capital of year-end1disallowance amount of the corporation is less than one hundred million yen, amount of entertainment expenses will be spending.

good news! reduce the taxation of small business entertainment expenses

2009 (heisei21) years6based on the recent social and economic conditions in may, fixed amount of small business deduction limit has been revised. 2009 (heisei21) years4month1for fiscal years ending on or after the date, capital of1for small and medium enterprises billion yen or less, maximum deduction of entertainment expenses is fixed400from ten thousand yen600has been raised to ten thousand yen. let’s look at concrete.

for example, capital3,000million yen, fiscal year4month1day~following year3month31day, annual amount of entertainment expenses500the case of ten thousand yen,

disallowance amount and revised 500million yen×10%=50million yen
corporate tax, such as entertainment expenses for non-deduction amount 50million yen×35%=17.5million yen
(effective tax rate35%calculated as)

amount prior to the revision-disallowance (500million yen?400million yen) +400million yen×10%=140million yen
corporate tax, such as entertainment expenses for non-deduction amount 140million yen×35%=49million yen
and therefore, 49million yen?17.5million yen=31.5tax saving of ten thousand yen

will be.

frame a new entertainment expenses 5,000criteria yen if full cost

2006 (heisei18) years4month1fiscal years beginning on or after the date, 1per capita5,000for wining and dining expenses of the yen following, certain requirements under the, there was an amendment to the full cost (that is, that they do not need to be entertainment expenses) . this is 1per capita5,000entertainment expenses of the circle criterion entertainment expenses is a new frame is said to be.

this system is, capital1smes billion yen or less, of course, capital of1company more than a billion, listed companies will be subject to even. capital of1corporate entertainment expenses in excess of expenditure billion yen from the full cost if i did not ever, you can use this system to tax. upon receiving the tax effect is, you need to save the following documents as evidence of objective.

document retention requirements

from a range of entertainment expenses, 1per capita5,000as a requirement to exclude a certain food and drink yen or less, other similar acts to this restaurant (such as food that) for the expenses needed for the, you need to save a document describing the following matters:. since in the internal revenue service does not impose on the form to include them, will be created in the original. the listed, following5point.

1. date, such as food that was
2. customers who participated in the food, such as that, and its relationship, such as the name or designation of a person related to other business suppliers
3. number of persons who have participated in the food that
4. restaurant and that the amount of those costs, name and its location, such as restaurant (note) if its name or its location is not clear for other reasons that you do not own the store, or the name of the payee, such as listed in the receipt, the location of its principal office or head office or domicile or residence
5. other matters for reference (payment amount÷total number=1such as the payment amount per capita)

so troublesome somehow…… it may be assumed to, will teach you an easy way to manage. maternity attendee names to the company and receipt, relationship with the senpo (customers, supplier, shareholders), write the number of participants. this is the only. the payment amount is divided by the number of participants, 5,000if you have less than yen, this is entertainment expenses can be the full cost. whether you can work this simple point is. small businesses such as accounting personnel have no problem, but will, president1even a company like all the people that manage the, i think this is just would like you to.

5,000criteria yen point to take advantage of

5,000take advantage of the circle criterion, you can be the full cost of the entertainment expenses

1per capita5,000to take advantage of the tax to take full advantage of the yen following food and drink, there are several points should be noted.

1. entertainment expenses, excluding corporate
only an in-house food and beverage costs are excluded. and entertain customers with which you are temporarily1even people, if there was a need for employees of the self must participate in the food that many, does not apply to corporate entertainment expenses.

2. consumption tax treatment depends on accounting
1per capita5,000criteria whether the amount of less than or equal to the circle, different depending on whether you have adopted one of the tax accounting method or accounting method corporation tax. if the tax accounting method, including tax5,000yen is a criteria. given the tax, tax accounting method will be advantageous.

3. limited to food and drink
5,000 criteria yen is, you are limited to wining and dining expenses of the entertainment expenses. as an expense that is included in the food and drink, table charge and service charge fee, there is a cost to bring back souvenirs, such as generation after a meal at a restaurant. cost may not be included in the cost of eating, drinking, transportation cost of the customer, generations pass souvenir as a gift (the previous generation and different souvenir) include.

notes on related subjects for entertainment expenses and not to

in tax investigation, those accounts and their own corporate entertainment expenses, content is unknown except for those, the investigators do not dare to pursue in detail. the investigators, investigate other accounts do not have accounts and entertainment expenses, i keep a watchful eye on whether there is no taxable entertainment expenses. there, we’ll look at notes and related subjects seen in small and medium enterprises.

1. welfare costs
expense of the party was intended for all employees is the welfare cost, volunteer to participate only after that2cost next meeting will be entertainment expenses.

2. conference expenses
lunch and refreshments can be provided with the conference to conference expenses. nakaniwa, 3,000it seems that management also has been mistaken for food and drink if possible to the conference cost of about yen, there is no such standards. the way, expenses are not included in-house meeting people outside the company, 5,000there is no standard application of the yen.

3. generation golf
generation that are relevant to operations outside competition and entertainment expenses will be, not related to their business (shall be considered private) competition will be outside the company payroll generation. in, generation competition would cost the corporate welfare or? if a company has incurred in-house competition for the generation of comfort to target employees, treated as a corporate expense account or salary. even though more and more people were fond of golf, think, because some employees can not participate in only. also, competition for the generation of the only officers, the directors’ bonuses would have been certified in-house rather than entertainment expenses.

the case of small and medium enterprises, year600entertainment expenses is spending up to ten thousand yen90%cost will be. also, 5,000criteria yen you can have entertainment expenses incurred by the full cost to take advantage of. take advantage of the profits wisely in order to contribute to the expense accounts.

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