Limits on representation expenses
Posted: Sun Jan 19, 2025 4:08 am
Entertainment expenses are subject to restrictions, so there is a maximum permissible amount of expenses incurred - 4% of the taxpayer's expenses on employee salaries for the reporting period.
Let's look at an example: let's say the Accrued Salary finland whatsapp number data Fund in May was 1.5 million rubles. At the same time, 4% of this amount is equal to 60 thousand rubles. That is, the payment of entertainment expenses in May should not exceed 60 thousand rubles.
It is important to understand that all expenses that exceed the permissible limit will have to be withheld from the company's net profit. The maximum amount of entertainment expenses is considered as a cumulative total (within the framework of taxation).
In the context of management accounting, it is important to draw up a plan for entertainment expenses. Setting planned values will allow you to conduct a plan/actual analysis in the future in order to optimize costs.
On topic. Current account and personal account: what is the difference
How to account for entertainment expenses
It is important to understand that the concept of "representative expenses" is used for taxation. In accounting, they are taken into account as expenses for the company's ordinary activities on the debit of expense accounts: 20, 26, 44 and 91.
Accounts vary depending on the organization's area of activity. Trading organizations record everything on accounts 26 and 44 (they simply do not have other accounts). And a manufacturing company, for example, will attribute all expenses to accounts 20, 26, 25 and 91.
When used correctly, entertainment expenses can be an effective tool for supporting marketing, improving communications with your organization's partners, and strengthening the company's brand. The main thing is to clearly understand what exactly should be included in this category and not exceed the established threshold for the amount of expenses.
Let's look at an example: let's say the Accrued Salary finland whatsapp number data Fund in May was 1.5 million rubles. At the same time, 4% of this amount is equal to 60 thousand rubles. That is, the payment of entertainment expenses in May should not exceed 60 thousand rubles.
It is important to understand that all expenses that exceed the permissible limit will have to be withheld from the company's net profit. The maximum amount of entertainment expenses is considered as a cumulative total (within the framework of taxation).
In the context of management accounting, it is important to draw up a plan for entertainment expenses. Setting planned values will allow you to conduct a plan/actual analysis in the future in order to optimize costs.
On topic. Current account and personal account: what is the difference
How to account for entertainment expenses
It is important to understand that the concept of "representative expenses" is used for taxation. In accounting, they are taken into account as expenses for the company's ordinary activities on the debit of expense accounts: 20, 26, 44 and 91.
Accounts vary depending on the organization's area of activity. Trading organizations record everything on accounts 26 and 44 (they simply do not have other accounts). And a manufacturing company, for example, will attribute all expenses to accounts 20, 26, 25 and 91.
When used correctly, entertainment expenses can be an effective tool for supporting marketing, improving communications with your organization's partners, and strengthening the company's brand. The main thing is to clearly understand what exactly should be included in this category and not exceed the established threshold for the amount of expenses.