For further cooperation with foreign enterprises, some managers hold official receptions. The expenses that go to pay for such dinners are usually called entertainment expenses. It is also customary to include in this group the costs of paying for an interpreter and visiting cultural events for successful work.
Instructions
Step 1
To prove the need for such costs, you must draw up supporting documents. You also need to have an order from the head on the use of funds by the campaign for such expenses, primary documents (these can be invoices for purchases of any products, certificates of service provision, etc.), as well as an act on the implementation of entertainment expenses.
Step 2
Next, you need to make an estimate. It should consist of the following points: the purpose of the event, date, venue, the composition of the invitees, the amount of entertainment expenses and the reception program. You also need to make an advance report on the use of the amount based on primary documents (checks, invoices, receipts and others).
Step 3
After using these funds, the manager must draw up an act that includes a statement of costs and the amount actually spent. This document is signed and sealed with the seal of the organization.
Step 4
According to PBU, entertainment expenses can be included in the calculation of taxes in the reporting period only if they do not in total exceed 4% of labor costs.
Step 5
In accounting, such costs are reflected in account 26 "General expenses" or 44 "Expenses for sale". If these expenses exceed the limit, then they are recognized as a deductible difference, which in turn defers income tax. This deferred amount reduces tax in subsequent reporting periods.
Step 6
It is customary to include such costs in other expenses that are related to the business of the enterprise. Personal income tax from these amounts is not charged only if there are correctly completed primary documents and the costs are justified.
Step 7
In accounting, entertainment expenses should be reflected with the following entries:
D44 "Expenses for sale" К60 "Settlements with suppliers and contractors" - reflects the costs of official receptions.
D19 "Value added tax on purchased valuables" К60 - VAT charged.
D60 K51 "Cashier" or 50 "Current account" - representation expenses have been paid.
D68 K19 - accepted for deduction of VAT.
Step 8
In case of exceeding the limit, postings are made:
D09 "Deferred tax assets" К68 "Calculations of taxes and fees" - deferred tax.
D68 K09 - deferred tax paid.
D68 K19 - deferred tax asset accepted for deduction.
