Hospitality

In the course of their activities, organizations carry hospitality intended for official receptions, servicing of representatives present at negotiations on the establishment and maintenance of cooperation between enterprises. They relate to other costs of production and its implementation. That is why when calculating the profit tax, they are taken into account as indirect costs of the enterprise.

Hospitality costs include:

- Negotiations, official receptions (lunches, breakfasts, other similar events) for certain persons and official representatives of the taxpayer enterprise participating in the negotiations;

- Buffet service for negotiations and official meetings;

- provision of transport delivery of officials to the place of the representative event;

- payment for the services of hired translators who are not part of the staff of the taxpayer enterprise, but provide translation.

Representation expenses can not include expenses for rest, entertainment, treatment and prevention of diseases, visits to cultural events. They can not be attributed to ordinary lunches in restaurants, accommodation costs, travel tickets, visas, jubilees and holidays. All these costs do not reduce the tax base.

In accounting, hospitality expenses are included in other expenses in full. For tax accounting, they are accounted for within certain limits. The total amount can be included in other expenses in the limit of 4% of the company's costs of labor. Such costs include salary charges for salaries and tariff rates, surcharges, compensation payments, bonuses, employee costs, as provided for in collective bargaining agreements. Excess of these costs in excess of the established rate is not taken into account in other expenses.

Managerial accounting of hospitality is made depending on what they are intended for. They are written off at the expense of certain means of the enterprise:

- Production costs;

- costs of trade;

- capital investments;

- other expenses reflected in the financial result that is accepted or not accepted for taxation purposes;

- Targeted sources of financing;

- an account on which values are taken into account (for example, those related to the purchase of securities).

The capital costs, which are related to the equipment of the premises for a business meeting, can not be included in representation expenses.

Registration of such expenses should be made by order or order of the head of the enterprise, in which all the nuances of registration will be specified. The Tax Code does not contain any specific requirements for registration of such primary documents. The enterprise establishes the procedure for spending representative means, drawing up documents and controlling it. Representative expenses, which are posted on primary documents containing information about the place, date of the event, list of representatives, the specific purpose of the costs, the outcome of the negotiations, should be documented by a certain package of documents. It should include: an order for the implementation of such expenses, cost estimates, a report (act) on their implementation, primary documents, an accounting reference with the calculation of the maximum standard.

Representation expenses are displayed on the debit of accounts 44 "selling costs", 20 "basic production" and 26 "general business expenses", but for the loan - in the accounts of section VI "settlements" and accounts: 50 "cash desk", 19 "VAT" 51 "settlement accounts", 71 "settlements with accountable persons".