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Ministry of Finance: Allows pre-tax deduction for advertising expenses for cosme

2019-04-16

Ministry of Finance: Allows pre-tax deduction for advertising expenses for cosmetics and other enterprises

 According to the Ministry of Finance website, in accordance with the provisions of Article 44 of the Implementation Regulations of the Enterprise Income Tax Law of the People's Republic of China (Order No. 512 of the State Council), the current pre-tax deduction policy for advertising fees and business promotion expenses is as follows:
Expenditures for advertising and business promotion expenses incurred in the manufacture or sale of cosmetics, pharmaceutical manufacturing and beverage manufacturing (excluding alcohol manufacturing) shall not exceed 30% of the sales (business) income of the year, and may be deducted; The tax year will be carried forward and deducted.
For affiliated enterprises that have signed advertising fees and business promotion fee sharing agreements, the advertising expenses and business promotion expenses incurred by one of the parties not exceeding the sales (business) income pre-tax deduction limit of the current year may be deducted from the enterprise, or may be Some or all of them are collected according to the sharing agreement and deducted from the other party. The other party may calculate the advertising fee and business promotion fee collected into the enterprise according to the above-mentioned methods when calculating the enterprise income tax pre-tax deduction limit for the enterprise advertising fee and business promotion fee.