What company expenses are reimbursable

No matter what the industry, expenses include production and period costs. As long as the expenses incurred are real and legitimate, they can be reimbursed.

Generally, the content of production costs can be well separated, the content of the period costs are more difficult to separate. To provide you with the content of the period cost accounting:

(a) the accounting content of operating expenses

Operating expenses refers to the enterprise in the sale of goods in the process of the costs incurred as well as for the sale of the enterprise's merchandise and the sales organization dedicated to the sale of goods (including sales outlets, after-sales service outlets, etc.) of the operating costs. Commodity distribution enterprises in the purchase of goods in the process of purchase costs are also included in the operating expenses.

Operating expenses generally include the following five aspects:

1. Product self-sale costs: including the enterprise should be borne by the packaging costs, transportation costs, handling costs, insurance costs.

2. Product promotion costs: in order to expand the sales of the enterprise's goods and promotional costs incurred: exhibition fees, advertising costs, operating lease costs (for the expansion of sales and rental of counters, equipment, etc., excluding financial leasing fees), sales and service costs (the cost of providing after-sales service).

3. Sales department costs: generally refers to the sale of the enterprise's goods and specialized sales organizations (including sales outlets, after-sales service outlets, etc.) of the wages and benefits of employees, similar to the nature of the wage costs, business expenses and other operating expenses. However, the internal sales department of the enterprise belongs to the administrative department, the expenses incurred are not included in the operating expenses, but are included in the administrative expenses.

4. Commissioned sales costs: mainly refers to the enterprise commissioned other units to sell on behalf of the commissioned sales commission paid in accordance with the provisions of the sales contract.

5. Commodity distribution enterprises in the purchase of goods costs: refers to the commodity distribution enterprises in the purchase of goods in the process of transportation costs, loading and unloading costs, packaging costs, insurance costs, reasonable loss in transit and storage before the selection of the finishing costs.

(ii) the accounting content of the management costs

Management costs refers to a variety of costs incurred by the enterprise to organize and manage production and business activities. Including the board of directors and administrative departments of the enterprise in the management of the enterprise, or should be borne by the enterprise unified negative costs, individual including the following:

1. Management and staff side of the enterprise

(1) the company funds: refers to the administrative departments of the enterprise directly in the administrative departments of the administrative departments of the administrative departments of the staff wages, repairs, material consumption, amortization of low-value consumables, office expenses and travel expenses.

(2) Labor Union Funds: refers to the funds accrued and allocated to the labor union for use at the rate of 2% of the total wages of the employees (minus the housing subsidies paid according to the prescribed standards, the same below).

(3) Employee education expenses: 1.5% of the total wages of the employees and allocated to the training and learning expenses of the employees.

(4) Labor insurance premiums: refers to the enterprise's payment of retired employees' pensions (including the required contribution to the local co-ordinated pension), price subsidies, medical expenses (including the payment of retired employees' participation in medical insurance), relocation expenses, employees' severance payments, wages of employees on sick leave of more than six months, funeral subsidies for the death of an employee, compassionate care expenses, and other expenses paid to retired employees in accordance with the provisions of the law.

(5) Standby insurance premiums: refers to the industry insurance fund paid by enterprises in accordance with the regulations).

2. Expenses used for purposes other than the direct management of the enterprise

(1) Board of Directors' Fees: refers to all expenses incurred by the board of directors or the supreme authority of the enterprise and its members for the purpose of carrying out their powers and functions, including members' allowances, travel expenses, meeting expenses, and so on.

(2) Consulting fees: refers to the fees paid by the enterprise to the relevant consulting organizations for production technology, operation and management consulting or the fees paid to the enterprise's economic consultant, legal adviser and technical adviser.

(3) Hiring intermediary agency fees: refers to the costs incurred by the enterprise in hiring an accounting firm to carry out account checking, capital verification, asset evaluation, and clearing accounts.

(4) Litigation fees: refers to the fees paid by an enterprise to sue or respond to a lawsuit in court.

(5) Taxes: refers to property tax, vehicle and vessel use tax, land use tax, stamp duty, etc. paid by the enterprise according to regulations. (6) Mineral Resources Compensation Fee: refers to the mineral resources compensation fee paid by the enterprise in accordance with a certain percentage of the main business income for the exploitation of mineral resources in the domain of the People's Republic of China*** and other jurisdictional waters.

3. Costs of providing technical conditions for production

(1) Sewage charges: refers to the sewage charges paid by enterprises in accordance with the regulations of the environmental protection department.

(2) Greening fee: refers to the cost of sporadic greening in the enterprise area.

(3) Technology transfer fee: refers to the fee paid by the enterprise for the use of non-proprietary technology.

(4) Research and development expenses: refers to the expenses incurred by the enterprise for the development of new products and technologies, such as the design of new products, the formulation of technological procedures, the debugging of equipment, the testing of raw materials and semi-finished products, the cost of technical books and materials, the cost of intermediate tests not included in the national plan, the salaries of researchers, the depreciation of research equipment, the expenses related to the research of new products and technologies, the expenses of scientific research and trial production entrusted to other units, and the costs of trial production. research and trial production costs and trial production failure losses.

(5) Amortization of intangible assets: the value of intangible assets amortized by the enterprise. Including amortization of patents, trademarks, copyrights, land use rights, non-patented technologies and goodwill.

(6) Amortization of long-term amortized expenses: refers to the enterprise's amortization of all expenses with an amortization period of more than one year over the beneficial period of the expense item in an average installment period, including overhaul expenditures of fixed assets that are amortized equally according to the overhaul intervals, improvement expenditures of leased-in fixed assets that are amortized equally over the shorter of the lease term or the useful life of the leased assets, and over the beneficial period. Amortization of other long-term amortized expenses.

4. Business entertainment expenses for purchasing and selling business: expenses paid by an enterprise for the reasonable needs of business operation, which should be included in administrative expenses accordingly.

5. Losses or Provisions

(1) Provision for Bad Debts: refers to the provision for bad debts made by the enterprise according to a certain percentage of the receivables.

(2) Provision for inventory valuation: refers to the provision for inventory valuation made by an enterprise on the basis of the difference between the net realizable value of inventory at the end of the period and its cost.

(3) Inventory losses and gains: the net amount of gains, losses and gains from inventory counts of an enterprise, but excluding inventory losses that should be included in the operating out.

6. Other expenses: refers to the costs not included in the above and should be included in administrative expenses.

(C) accounting for financial expenses

Financial expenses refers to the enterprise to raise funds needed for production and operation of the costs incurred, including interest expenses (less interest income), foreign exchange losses (less foreign exchange gains) and related fees. Its specific content includes:

1. Interest expense, refers to the enterprise short-term borrowing interest, long-term borrowing interest, interest on notes payable, discounted interest on notes, interest on bonds payable, long-term interest payable on the introduction of foreign equipment and other interest expenses (in addition to capitalized interest) minus bank deposits, etc., the net amount of interest income.

2. Loss on exchange refers to the difference between the bank's buying and selling price and the exchange rate used for bookkeeping purposes arising from the settlement of sales or purchases of foreign exchange from banks, as well as the difference between the foreign currency closing balances of various foreign currency accounts at the end of the month (quarterly or yearly), the recorded RMB amount converted at the specified exchange rate at the end of the period, and the original bookkeeping amount of RMB.

3. Relevant handling fees refer to the handling fees required to be paid for the occurrence of bonds (except for those to be capitalized), bank charges for the issuance of bills of exchange, and handling fees for the transfer of foreign exchange, etc., but do not include those paid for the issuance of shares, etc.

4. Other financial expenses, such as finance leasing costs incurred for finance leased fixed assets.

Legal Basis

Regulations on the Implementation of the Enterprise Income Tax Law of the People's Republic of China

Article 40 Expenditures incurred by an enterprise in respect of employee welfare costs shall be allowed to be deducted to the extent that such expenditures do not exceed 14% of the total amount of wages and salaries.

Article 41 Enterprises are allowed to deduct the portion of labor union funds not exceeding 2% of the total wages and salaries.

Article 42 Unless otherwise provided by the competent departments of finance and taxation of the State Council, the expenditure incurred by an enterprise for employee education shall be allowed to be deducted to the extent that it does not exceed 2.5% of the total amount of wages and salaries, and the part in excess of this amount shall be allowed to be carried forward and deducted in the subsequent taxable years.

Article 43 of the business hospitality expenses incurred by enterprises in connection with production and business activities, in accordance with the amount of 60% deduction, but the maximum shall not exceed 5 ‰ of the current year's sales (operating) income.

Article 44 The qualified advertising and business promotion expenses incurred by an enterprise, in addition to the State Council's competent financial and taxation departments provide otherwise, not exceeding 15% of the current year's sales (operating) income, are allowed to deduct; more than the portion of the deduction is allowed to be carried forward in the subsequent tax year.