Executive Studios In Ngara
Executive Studios In Ngara
Income tax
Some accountants are wary of hospitality. And in vain. Indeed, with proper documentation, the costs of meetings and negotiations with contractors will find their place in the company’s accounting. To dispel all your doubts, we will tell you about what all the same costs can be called representative and how to properly document them. https://jiji.co.ke/ngara/houses-apartments-for-rent/executive-studios-in-ngara-45ZFAQCJathRhk9Fzk4BCiK1.html
Despite the fact that hospitality expenses have become a part of the life of many enterprises, legislators still have not been able to somehow regulate the composition of such expenses. The only normative document that gives an answer to the question of what entertainment expenses are and what expenses can be attributed to them is Rule No. 1026 *. However, it is mandatory for use only for budget organizations. For all the rest, the Norms are just a guideline, a document that can be taken as a basis when developing their own internal Regulations on Representative Expenses. The fact that ordinary enterprises can (but are not obliged) to be guided by „budgetary“ Norms No. 1026, the tax authorities said in letter No. 5743 **.
* The norms of funds for representative purposes of budgetary institutions and the procedure for their spending, approved by order of the Ministry of Finance dated September 14, 2010 No. 1026.
So, hospitality expenses are the expenses of budgetary institutions for the reception and servicing of foreign representatives and delegations who arrived at the invitation to conduct negotiations in order to carry out international relations, establish and maintain mutually beneficial cooperation (clause 2 of the Norm No. 1026).
As you can see, the expenses for the reception and servicing of foreign representatives and delegations are called representative. Hence, someone might get the impression that the costs of negotiating with representatives of Ukrainian enterprises, as well as costs incurred not at home, but, for example, on a business trip, can no longer be considered representative. In fact, this is not the case. Let us repeat: a narrow interpretation of such expenses from Norms No. 1026 is obligatory only for state employees. It is absolutely not important for us whether your partners arrived from another continent or their office is located on the next street. By the way, in due time the representative character of expenses for the reception of Ukrainian delegations was also noted by the tax authorities in the letter No. 14054 ***.
*** Letter of the Ministry of Revenue dated 25.10.2013 No. 14054/6 / 99-99-19-03-02-15.
for non-budget employees there are no restrictions on entertainment expenses incurred by an employee of the enterprise on a business trip
After all, negotiating by representatives of the enterprise outside or outside its location, as well as organizing meetings on a business trip, do not change the goals of the costs incurred.
And, finally, the time of the entertainment events does not matter: they can be held outside working hours, and even on weekends.
What exactly Standards No. 1026 relate to entertainment expenses, see the table.
1. Costs of the official reception
This group of expenses includes the cost of treating guests (breakfast, lunch, dinner) and renting a room for an official reception. At the same time, the place of the official reception can be chosen according to your taste. This can be your office, a business center, a restaurant, a cafe, as well as coworking centers that are very fashionable now (see Tax and Accounting, 2018, No. 33, p. 22) and anti-cafe.
Note! Neither the NKU nor the Norms No. 1026 contain any restrictions on the costs of paying for alcoholic beverages in restaurant establishments. Therefore, if your business dinner (official reception) is held in a restaurant, then the cost of alcohol can also be included in the entertainment expenses.