How to calculate the initial investment of a hotel

The capital invested by the hotel in the early stage refers to all kinds of expenses incurred in preparing for the hotel before the hotel officially opens, such as land purchase fee, construction project fee, equipment purchase fee, organization fee, etc.

1. Classification of hotels' upfront investment.

Fixed assets: refers to long-term assets such as land, buildings, machinery and equipment that have a service life of more than one year and are of great value and are not held for sale.

Intangible assets: refers to long-term assets that have no physical form but can bring economic benefits to enterprises, such as land use rights, trademark rights and patent rights.

Capital reserve: refers to the capital invested by an enterprise with non-cash assets, or the part that exceeds the registered capital or share capital due to exchange rate changes, debt restructuring and other reasons, such as capital reserve such as capital premium.

2. The hotel determines the investment method in the early stage.

The funds invested by the hotel in the early stage can be invested by investors in the form of cash or non-cash assets (such as equity and creditor's rights). ), can also be raised or borrowed by the enterprise itself. Different investment methods will affect the amount and structure of paid-in capital or equity and capital reserve.

3. Determine the investment amount

The funds invested by the hotel in the early stage should be accounted for according to the actual or agreed amount. If the investment is made in non-cash assets, the investment amount shall be subject to the value confirmed by the investor. If the investment method is foreign currency, it shall be converted into local currency according to the exchange rate on the day when the investment amount is received or the exchange rate agreed in the contract.

Corporate income tax and value-added tax on hotel pre-investment

1. Corporate income tax on hotel upfront investment.

If the funds invested by the hotel in the early stage are invested by investors in the form of non-cash assets, and the fair value of the non-cash assets is higher than its book value or cost, the investors should calculate the taxable income and pay enterprise income tax according to the difference between the fair value and book value or cost.

2. Value-added tax invested by the hotel in the early stage

If the funds invested by the hotel in the early stage are invested by investors in the form of non-cash assets, and the non-cash assets are taxable items of value-added tax, then the investors should calculate the value-added tax payable according to the fair value and issue special invoices for value-added tax. If the funds invested by the hotel in the early stage are raised or borrowed by the enterprise itself, then the enterprise does not need to pay VAT.