(1) the labor costs of the preparatory staff: specifically including the preparatory staff of wages and bonuses and other wage expenses, as well as social insurance should be paid for a variety of social security. Welfare costs incurred during the preparatory period, such as medical expenses, if the preparatory period is relatively short can be charged according to the facts, the preparatory period is longer, can be based on 14% of the total wages of employee welfare costs to be resolved.
(2) travel expenses: including in-town transportation and out-of-town travel.
(3) Board of directors' fees and joint committee fees
2, the costs of business registration and notarization: mainly including registration fees, capital verification fees, tax registration fees, notarization fees and so on.
3, the cost of raising capital: mainly refers to the handling fees paid for fund-raising, as well as exchange gains and losses not included in fixed assets and intangible assets, and interest.
4, personnel training costs: mainly the following two cases
(1) the introduction of equipment and technology needs to be digested and absorbed, selected some workers in the preparatory period to go out for further training and learning costs.
(2) to hire experts for technical guidance and training of labor and related costs costs.
5, amortization, scrap and destruction of business assets
6, other costs
(1) office expenses, advertising costs, socializing and entertainment costs incurred during the preparatory period.
(2) Stamp duty
(3) Feasibility study expenses confirmed by the investor to be borne by the company
(4) Other expenses related to the establishment of the company, such as expenses for information surveys, litigation, printing of documents, communication, and celebration gifts.
Expenses not included in the scope of start-up costs
1, expenses incurred in the acquisition of various assets. This includes transportation costs, installation costs, insurance costs and related labor costs incurred in the acquisition and construction of fixed assets and intangible assets.
2, the provisions of the costs to be borne by the investing parties. Such as the investment parties for the preparation of the enterprise investigation, negotiation of travel expenses, consulting fees, hospitality and other expenses incurred. Our government also stipulates that, when the Sino-foreign joint venture negotiations, foreign businessmen are required to negotiate business hospitality expenses incurred shall not be listed as start-up costs of the enterprise, and shall be borne by the enterprise that made the invitation.
3, fixed assets, intangible assets and other expenditures for the training of employees shall not be included as start-up costs.
4, the interest paid by the investor for the capital invested to raise money on its own shall not be included in the start-up costs and shall be borne by the investor itself.
5, foreign currency cash deposits in the bank and the handling fees paid, the cost shall be borne by the investor.
Determination of the preparatory period
The determination of the preparatory period of the enterprise in our country is greatly influenced by the tax law. For example, the Implementing Rules of the Foreign Income Tax Law stipulates that "the preparatory period of a foreign enterprise shall be the period from the date of approval of the preparatory work of the enterprise to the date of commencement of production and operation (including trial production)". The "date of approval for preparatory work" referred to above specifically refers to the date when the investment agreement and contract signed by the enterprise are approved by the government of China. The "date of commencement of production and operation (including trial production)" refers to the end of the preparatory period from the date on which the enterprise's equipment starts to operate, and the enterprise starts to supply materials to manufacture products or sell the same first commodity. Other enterprises may refer to this provision.
Amortization of start-up costs
Start-up costs are generally amortized over five years, and the new enterprise accounting system stipulates that start-up costs are amortized in one lump sum
Accounting treatment of start-up costs
The provisions of the "Enterprise Accounting System" (Caixin [2000] No. 25) on start-up costs and the provisions of Article 34 of the "Implementing Regulations of the Provisional Regulations for Enterprise Income Tax" on start-up costs are no longer in effect. The provisions on start-up expenses under the Accounting System for Enterprises (Cai Shui [2000] No. 25) and the provisions on start-up expenses under Article 34 of the Implementation Rules of the Provisional Regulations on Enterprise Income Tax have been invalidated. On January 1, 2008, the new Enterprise Income Tax Law was implemented.
Article 9 of Document No. 98 of the State Taxation Letter [2009] stipulates that: The start-up expenses are not explicitly listed as long-term amortized expenses in the new tax law, and the enterprises may deduct them in a lump sum in the year of the commencement of the operation, or they may deal with them in accordance with the provisions of the new tax law on the treatment of long-term amortized expenses, which shall not be altered once they are selected.
Enterprises' unamortized start-up costs in the years prior to the implementation of the new tax law may also be treated in accordance with the above provisions.
Article 70 of the Regulations for the Implementation of the Enterprise Income Tax Law Other expenditures that should be treated as long-term amortized expenses as referred to in Item (4) of Article 13 of the Enterprise Income Tax Law shall be amortized by installments starting from the month following the month in which the expenditures are incurred, and the amortization period shall not be less than three years.