Opening ceremony costs should also belong to the start-up costs. (A) the specific content of the start-up costs
1, the expenses of the preparatory staff
(1) the labor costs of the preparatory staff: specifically, including the preparatory staff of the wages and bonuses and other wage expenses, as well as should be paid to the various social insurance. During the preparatory period, such as medical expenses and other welfare costs, if the preparatory period is relatively short can actually be expensed, the preparatory period is longer, can be based on 14% of the total wage bill to be resolved by the accrual of employee welfare costs.
(2) travel expenses: including in-town transportation and out-of-town travel.
(3) board of directors' fees and joint committee fees
2, the cost 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, etc..
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) the hiring of experts for technical guidance and training of labor and related costs.
5, amortization, scrapping 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 preparation of the construction, such as information research, litigation costs, printing costs, communication costs, and celebration gift costs and other expenses.
(2) Expenses not included in the scope of start-up costs
1, expenses incurred in the acquisition of various assets. Including the purchase and construction of fixed assets and intangible assets is to pay for the transportation costs, installation costs, insurance costs and the purchase and construction of the relevant labor costs incurred.
2, the provision should be borne by the investing parties. Such as the investment parties for the preparation of the establishment of the enterprise has carried out investigations, negotiation of travel expenses, consulting fees, hospitality and other expenditures incurred. Our government also stipulates that when the Sino-foreign equity joint venture negotiations, foreign businessmen are required to negotiate business hospitality expenses incurred shall not be listed as the 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 classified 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.
(C) the determination of the preparatory period
The determination of the preparatory period of the enterprise in our country by the tax law has a greater impact. For example, the Implementation Rules of the Foreign Income Tax Law, "foreign-funded enterprises in the preparatory period for the enterprise was approved for the preparatory period until the date of the start of production, 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.
(d) start-up costs are generally amortized over a five-year period, the new enterprise accounting system provides that start-up costs are amortized at once