What is the pre-tax deduction standard for advertising fees?

First, the general enterprise deduction standard does not exceed 15%.

According to Article 44 of the Regulations for the Implementation of the Enterprise Income Tax Law, the eligible advertising expenses and business promotion expenses incurred by an enterprise are allowed to be deducted if they do not exceed 0/5% of the sales (business) income/kloc-in the current year, unless otherwise stipulated by the competent departments of finance and taxation of the State Council; The excess shall be allowed to be carried forward and deducted in future tax years.

The deduction standard for the second and third types of enterprises will be raised to 30%.

According to the Notice of the Ministry of Finance of State Taxation Administration of The People's Republic of China on Pre-tax Deduction Policy for Advertising Fees and Business Promotion Fees (Caishui [20 1 7] No.41), from 20 16 years 10 months to1February to 3 1 year. The excess shall be allowed to be carried forward and deducted in future tax years.

Three, tobacco advertising and business promotion fees of tobacco enterprises shall not be deducted.

According to the Notice of State Taxation Administration of The People's Republic of China of the Ministry of Finance on Pre-tax Deduction Policy for Advertising Fees and Business Promotion Fees (Caishui [2017] No.41), tobacco advertising fees and business promotion fees of tobacco enterprises shall not be deducted when calculating taxable income.

Four, affiliated enterprises can be deducted according to the sharing agreement.

According to the Notice of State Taxation Administration of The People's Republic of China of the Ministry of Finance on Pre-tax Deduction Policy for Advertising Fees and Business Promotion Fees (Caishui [2017] No.41), the advertising fees and business promotion fees incurred by one of the affiliated enterprises that signed the Agreement on Sharing Advertising Fees and Business Promotion Fees (hereinafter referred to as the Agreement) can be deducted in this enterprise, or partially or completely. When calculating the pre-tax deduction limit of enterprise income tax for enterprise advertising fees and business promotion fees, the other party may exclude the advertising fees and business promotion fees charged to the enterprise according to the above method.

Five, the calculation base of advertising fee deduction limit

According to Article 44 of the Regulations for the Implementation of the Enterprise Income Tax Law, the eligible advertising expenses and business promotion expenses incurred by an enterprise are allowed to be deducted if they do not exceed 0/5% of the sales (business) income/kloc-in the current year, unless otherwise stipulated by the competent departments of finance and taxation of the State Council; The excess shall be allowed to be carried forward and deducted in future tax years.

According to Article 1 of the Notice of State Taxation Administration of The People's Republic of China on Several Tax Treatment Issues in the Implementation of Enterprise Income Tax (Guo [2009] No.202), sales (business) income shall include the deemed sales (business) income as stipulated in Article 25 of the implementation regulations when calculating the deduction limit of business entertainment expenses, advertising expenses and business promotion expenses.

Legal basis:

According to Article 40 of the Measures for Pre-tax Deduction of Enterprise Income Tax:

If the advertising expenses incurred by taxpayers in each tax year do not exceed the sales (business) income, the actual deduction is 2%; The excess can be carried forward indefinitely to pay taxes later.