How to account for donation expenditure?

2022-06-18 0 By

How to account for donation expenditure?If the enterprise produces external donation expenditure, borrow: non-business expenditure loan: cash on hand/bank deposit/goods on hand, etc.If the enterprise receives donations, it can borrow: cash on hand/bank deposits/goods on hand, etc.Donation expenditure generally refers to the value of various assets donated by enterprises. Donation expenditure can be divided into public welfare donation expenditure and non-public welfare donation expenditure.Expenditure for public welfare donations refers to the amount less than 12% of the annual total profit that an enterprise spends through public welfare social organizations or people’s governments at or above the county level and their departments. When calculating taxable income within three years after being carried over, the amount more than 12% of the annual total profit is allowed to be deducted.Increasingly, all but public welfare spending is non-public welfare spending.Is the input tax on donation expenditures deductible for certification?There are different ways to deal with different situations.The public welfare donation of an enterprise is a gratuitously donated gift, which shall be regarded as the sale of goods to pay VAT, and the input tax shall be deducted against the special VAT invoice.In case of VAT input invoices obtained for public welfare donations, input tax can be deducted, and the accounting treatment is as follows: borrowing: fixed assets and other items tax payable – VAT payable – Input tax loan: non-operating income.If a unit makes public welfare donations, its input tax cannot be deducted, that is, the input tax of VAT on goods purchased for foreign donations cannot be deducted, and its accounting treatment is as follows: borrowing: non-business expenditure lending: bank deposits and other items.