What expenses can be confidently classified as entertainment expenses:
Posted: Sun Jan 19, 2025 4:08 am
What expenses fall under the classification of "representative"
This type of expenses includes business meetings where important business issues are discussed between partners, contracts are signed, and reference points for further interaction are outlined.
Accounting for entertainment expenses has a number of nuances reflected in the second paragraph of Article 264 of the Tax Code of the Russian Federation.
expenses for organizing and holding official egypt whatsapp number data meetings and receptions of all persons who must take part in them;
transportation services: delivery of business partners to and from events;
payment for the work of a freelance translator hired to accompany the event.
There are expenses that are illegal to classify as entertainment expenses:
hotel accommodation for business partners;
payment for meals that did not take place within the framework of official events: breakfasts, lunches and dinners in this case are paid for using the daily allowance received by the partners’ employees in their organization;
expenses for organizing leisure and recreation;
corporate events of your own company in honor of various holidays;
prevention and treatment of diseases among delegation members;
payment for souvenirs and gifts.
Regarding the last point (souvenirs and gifts) in the context of entertainment expenses, disputes regularly arise and there are even precedents of going to court.
The tax service's position is usually that this type of expenses should be attributed to advertising activities. But sometimes the courts disagree. To avoid a precedent, we advise not to include souvenirs and gifts in entertainment expenses.
This type of expenses includes business meetings where important business issues are discussed between partners, contracts are signed, and reference points for further interaction are outlined.
Accounting for entertainment expenses has a number of nuances reflected in the second paragraph of Article 264 of the Tax Code of the Russian Federation.
expenses for organizing and holding official egypt whatsapp number data meetings and receptions of all persons who must take part in them;
transportation services: delivery of business partners to and from events;
payment for the work of a freelance translator hired to accompany the event.
There are expenses that are illegal to classify as entertainment expenses:
hotel accommodation for business partners;
payment for meals that did not take place within the framework of official events: breakfasts, lunches and dinners in this case are paid for using the daily allowance received by the partners’ employees in their organization;
expenses for organizing leisure and recreation;
corporate events of your own company in honor of various holidays;
prevention and treatment of diseases among delegation members;
payment for souvenirs and gifts.
Regarding the last point (souvenirs and gifts) in the context of entertainment expenses, disputes regularly arise and there are even precedents of going to court.
The tax service's position is usually that this type of expenses should be attributed to advertising activities. But sometimes the courts disagree. To avoid a precedent, we advise not to include souvenirs and gifts in entertainment expenses.