Kunpeng Project
How to Calculate Revenue from Business Entertainment? Is deemed sales revenue included?
According to Article 2 of the Notice of the State Administration of Taxation on Several Tax Treatment Issues in the Implementation of Enterprise Income Tax, when calculating business publicity expenses, they should be regarded as input tax on business publicity expenses. Deemed sales are calculated on the basis of real sales under certain special conditions, but are subject to tax according to the regulations. The original intention of this is to ensure that enterprises can avoid tax evasion when deducting various expenses such as business entertainment expenses, so as to maintain tax fairness and stability.
In real life, a deemed sale is defined as income that is ostensibly unrelated to the sale but is taxable under tax regulations. For example, if a business earns revenue from the provision of a service or other non-commodity**, then such income can be counted as a sale. For example, a company engaged in catering business activities, in accordance with relevant laws and regulations, should include this income when calculating business entertainment expenses.
In addition, because the way each industry and company operates differently, the situation of deemed sales will also be different. For example, in the entertainment, tourism and service industries, companies can earn income through membership, advertising cooperation, etc., and such income can also be taxed as sales.