Can publicity fees be carried forward and deducted in future years?

The first is to distinguish between the old and new regulations and grasp the deduction standards for advertising fees and business promotion fees. Under the new law, the deduction standards for advertising expenses and business promotion expenses are increased and the categories are reduced. Article 44 of the "Regulations on the Implementation of the Enterprise Income Tax Law" stipulates: Unless otherwise specified by the financial and tax authorities of the State Council, the qualified advertising and business promotion expenses incurred by the enterprise shall not exceed 15% of the sales (business) income of the current year. The portion above will be allowed to be deducted; the portion in excess will be allowed to be carried forward for deduction in subsequent tax years. The new law unifies the deduction standards for advertising expenses and changes the previous deduction ratios for advertising expenses for various types of enterprises. In addition, Caishui [2009] No. 72 supplementary regulations stipulate that (1) advertising and business promotion expenses incurred by cosmetics manufacturing, pharmaceutical manufacturing and beverage manufacturing (excluding alcohol manufacturing) enterprises shall not exceed the sales (operating) income of the year 30 % is allowed to be deducted; the excess is allowed to be carried forward for deduction in subsequent tax years. (2) Tobacco advertising and business promotion expenses incurred by tobacco companies shall not be deducted when calculating taxable income. The implementation period of Caishui [2009] No. 72 is from January 1, 2008 to December 31, 2010.

The old law had a lower deduction standard for advertising expenses. In addition to the general provisions, it was also divided into six categories of industries. The basic regulations on advertising expenses are that if the advertising expenses incurred by taxpayers through media publishing in each year do not exceed 2% of sales (business) income, they can be deducted according to the actual situation, and the excess can be carried forward indefinitely to subsequent tax years. . The following special situations require attention:

(1) Food (including health products and beverages), daily chemicals, home appliances, communications, software development, integrated circuits, real estate development, sports culture, furniture and building materials malls, And clothing manufacturing enterprises, etc., the deduction rate is 8%.

(2) High-tech enterprises and Internet websites engaged in software development, integrated circuit manufacturing and other businesses, and venture capital enterprises engaged in high-tech venture capital investment, within 5 tax years from the date of registration and establishment, Upon review by the competent tax authorities, advertising expenditures may be deducted based on the facts. If it is more than 5 years old, a deduction of 8% will be made.

(3) Advertising fees for grain liquor shall not be deducted before tax.

(4) The actual advertising expenses and business promotion expenses incurred by telecommunications enterprises can be combined and deducted before corporate income tax at 8.5% of the main business income.

(5) The pre-tax deduction for advertising expenses, business promotion expenses, and business entertainment expenses of financial enterprises shall be implemented in accordance with the principles of Guo Shui Han [2003] No. 1147.

(6) The deduction standard for pharmaceutical companies is 25%.

(7) The calculation method for the deduction limit of advertising fees paid collectively by the head office is: the deduction of advertising fees calculated based on the prescribed standards based on the sales (business) income of the approved merger (aggregation) tax-paying member enterprises limit, minus the advertising expenses actually deducted by each collective tax-paying member enterprise in accordance with the prescribed standards, and the balance shall be used as the deduction limit for advertising expenses centrally paid by the head office.

(8) If a taxpayer really needs to increase the deduction ratio of advertising expenses due to special reasons such as industry, it must report to the State Administration of Taxation for approval.

Second, the deduction standards for advertising fees and business promotion fees are merged, and the two ratios are no longer implemented.

The old law has different deduction standards for advertising expenses of 2% and business promotion expenses of 5‰. The basic regulations on advertising expenses are that the advertising expenses incurred by taxpayers through media publishing of advertisements each year shall not exceed sales. 2% of the (business) income can be deducted according to the actual situation; in terms of business promotion expenses, the business promotion expenses incurred by the taxpayer in each tax year (including advertising expenditures not passed through the media) shall not exceed the sales (business) income. Within the range of 5‰, it can be deducted according to the actual situation. The amount exceeding 5‰ shall not be deducted in the current year. Deductions will not be allowed in subsequent years.

Advertising fees and business promotion fees under the new law will be combined into unified standards. The new "Enterprise Income Tax Law" breaks the original situation of inconsistent pre-tax deduction policies for advertising expenses and business promotion expenses for enterprises in different industries and different economic natures, and stipulates the eligible advertising expenses and business promotion expenses incurred by enterprises in each tax year. In addition to special industries, this policy adjustment will make the competitive environment between different enterprises fairer and easier to operate in tax collection and management.

The third is to clarify advertising and sponsorship expenses Deduction conditions for (non-advertising expenditures).

The deduction policy for advertising expenses and sponsorship expenses is different. Article 44 of the "Implementation Regulations" stipulates that qualified advertising expenses are allowed to be deducted before corporate income tax. Whether advertising expenses meet the formal requirements, the "Measures for Pre-tax Deduction of Enterprise Income Tax" (Guo Shui Fa [2000] No. 84) stipulates that the advertising expenses reported for deduction by taxpayers must meet the following conditions:

(1) The advertisement is produced through a specialized agency approved by the industrial and commercial department;

(2) The cost has been actually paid. And the corresponding invoice has been obtained;

(3) Disseminated through certain media. Article 54 of the "Implementation Regulations" stipulates: The sponsorship expenditures that are not allowed to be deducted before corporate income tax as mentioned in Article 10 of the Corporate Income Tax Law refer to various non-advertising expenditures incurred by enterprises that have nothing to do with production and business activities.

The fourth is to find the correct base and accurately calculate the deduction amount.

The basis for calculating advertising expenses and business promotion expenses under the Enterprise Income Tax Law is sales (business) income.

The "Notice of the State Administration of Taxation on Issuing the (Annual Corporate Income Tax Return)" (Guo Shui Fa [2008] No. 101) further clarifies that according to the instructions for filling out the "Income Detailed Form" in Appendix 1, line 1 "Sales (Business) "Total income": The amount is line 2+13 of this table, that is, "Total sales (operating) income: main business income + deemed sales income". The bank's data is used to calculate business entertainment expenses, advertising expenses and business promotion expenses. The basis for calculating the expenditure deduction limit. Line 2 "Total operating income": The amount is lines 3+8 of this table. That is equal to "main business income + other business income." Lines 3 to 7 of "main business income": fill in the taxpayer's main business income in accounting according to the nature of the business in different industries. For taxpayers mainly engaged in foreign investment, their investment income shall be their main business income. Lines 8 to 12: Fill in the reports separately according to the specific business nature of "other business income" in accounting. Lines 13 to 16: Fill in “Income deemed sales”. Deemed sales refer to sales of goods, transfer of property or provision of services that are not accounted as sales in accounting but are treated as sales and recognized income for tax purposes in taxation.

In addition, pay attention to the pre-tax deduction for outdoor advertising space rental fees. Due to business promotion needs, some companies sign lease agreements with owners of outdoor advertising spaces such as buses and billboards, and ask advertising companies to produce advertising screens based on the promotional content. Are these expenses deducted as operating lease fees or advertising fees? ?According to the provisions of item 7 of the State Administration of Taxation's "Notice on Issuing (Explanations of Business Tax Items (Trial Draft))" (Guo Shui Fa [1993] No. 149), the service industry refers to the use of equipment, tools, places, information or skills for The business of providing services to society. The scope of collection of this tax includes: agency industry, hotel industry, catering industry, tourism industry, warehousing industry, leasing industry, advertising industry, and other service industries. Leasing industry refers to the business of transferring venues, houses, items, equipment or facilities to others for use within an agreed period of time. The advertising industry refers to the use of books, newspapers, magazines, radio, television, movies, slides, street signs, posters, windows, neon lights, light boxes and other forms to promote and provide products, business services, cultural and sports programs or announcements, statements and other matters related services business. In terms of the source and nature of expenses, general operating leases focus on the direct use of the leased property itself. In the leasing of advertising space, the leased property is the carrier of advertising content, and the lessee does not directly use the leased property itself. The rental fees for advertising spaces are essentially advertising fees and should be deducted before corporate income tax according to the tax regulations on advertising fees.

2. Accounting Treatment of Advertising Fees and Business Promotion Expenses

From the perspective of tax law regulations, advertising expenses and business promotion expenses incurred by enterprises have their own special features. On the surface, they are deductions subject to a limit. According to the regulations, the actual policy is to allow full pre-tax deduction, but the deduction time is correspondingly deferred and can be reversed indefinitely in subsequent years. Therefore, the accounting treatment is different from the deduction of other expenses. According to the "Accounting Standards for Business Enterprises - Application Guide", advertising expenses should be accounted for as period expenses and classified into the "Sales Expenses" account, all expenses before tax, and transferred to the debit side of the "Profit for the Year" account at the end of the period as a deduction for accounting profits. The amount shall be included in the current profit and loss. The "Accounting Standards for Business Enterprises - Application Guide" have canceled the two items of "accrued expenses" and "prepaid expenses", and advertising expenses are not allowed to be accrued or deferred. The excess portion of eligible advertising and business promotion expenses incurred by an enterprise is allowed to be carried forward and deducted in subsequent tax years. When incurred, such expenses are included in current profits and losses in accordance with accounting standards and do not form assets in the balance sheet. However, their tax basis can be determined in accordance with tax laws. The difference between the two falls under Article 18 of the Accounting Standards for Business Enterprises. No. - Income Tax". Income tax accounting should adopt the balance sheet debt method and use some new accounting subjects for accounting, such as "deferred income tax assets", "deferred income tax liabilities", "taxes payable" and "income tax expenses".

For example, in 2009 of Zhenxing Pharmaceutical Manufacturing Co., Ltd., the credit amount of the "main business income" account was 20 million yuan, and the credit amount of the "other business income" account was 7 million yuan. The exchange of non-monetary assets is regarded as The same sales revenue is 3 million yuan, "non-operating income" includes non-monetary asset exchange gains of 1 million yuan, debt restructuring gains of 500,000 yuan, advertising expenses of 9.4 million yuan, accounting profits of 1 million yuan, and the corporate income tax rate is 25 %, the income tax accounting treatment adopts the balance sheet liability method (assuming there are no other tax adjustments).

(1) The accrual base for advertising expenses in 2009 is 30 million yuan (20070300): 1 million yuan of non-monetary asset exchange income and debt restructuring income in "non-operating income" 500,000 yuan does not belong to sales (operating) income, so it is not included in the headcount.

(2) The number of advertising expenses allowed before tax. According to Caishui [2009] No. 72, the deduction of advertising expenses for pharmaceutical manufacturing enterprises is 30% of revenue, and the deduction limit is 9 million yuan (3000 × 30%). The actual amount was 9.4 million yuan, resulting in a deductible temporary difference of 400,000 yuan. Log in In the accounting books for future reference.

(3) Deferred income tax assets (amount incurred).

Because the advertising expenses have been included in the current profit and loss when incurred in accordance with accounting standards, they are not reflected as assets in the balance sheet at the end of the period. If they are regarded as assets, their book value is 0. Because according to the tax law, this type of expenditure is not included in the current balance sheet. There are certain standard restrictions on the pre-tax expenditures, and 9 million yuan can be deducted before tax in the current period. The 400,000 yuan that is not deducted before tax in the current period can be carried forward to subsequent years, and its tax base is 400,000 yuan. There is a temporary difference of RMB 400,000 between the asset's book value 0 and its tax base RMB 40)7. This temporary difference can reduce the company's taxable income in the future. For deductible temporary differences, when the recognition conditions are met, the relevant deferred income tax assets of RMB 100,000 (40×25%) should be recognized.

(4) The income tax payable is 350,000 yuan [(1040)×25%].

The accounting treatment is:

Debit: income tax expense 250,000

Deferred income tax assets (advertising fee items) 100,000

Debit: taxes payable - payable Income tax 350,000