Accounting treatment of customer's fitness card
Handling fitness cards for customers is generally included in business entertainment expenses. Business entertainment expenses are a series of expenses incurred by enterprises due to business needs. The new "Regulations for the Implementation of Enterprise Income Tax Law" has made new provisions. Business entertainment expenses are reasonable expenses of enterprises, which can be deducted before income tax according to a certain proportion in tax law, and cannot be deducted if it exceeds the standard.
Generally, we include business entertainment expenses in the subject of "management expenses". The accounting entries are as follows:
Borrow: management expenses-business entertainment expenses
Loans: cash on hand/bank deposits/other receivables, etc.
Scope of business Hospitality
The tax law does not accurately define the scope of business hospitality, but in the practice of tax law enforcement, we generally determine the scope of business hospitality as follows:
(1) Banquet or working meal expenses;
(2) the cost of giving souvenirs;
(three) the cost of scenic spots, transportation and other expenses;
(4) Travel expenses of business personnel.
Deduction ratio of business hospitality tax treatment
The new Regulations on the Implementation of Enterprise Income Tax Law has changed the different standards of domestic and foreign-funded enterprises in the past. Article 43 of the above-mentioned regulations stipulates that business entertainment expenses related to production and business activities of enterprises shall be deducted according to 60% of the amount incurred, but the maximum amount shall not exceed 5‰ (five thousandths) of the sales (business) income of the year.