Circular on the Standards for the Pre-tax Deduction of Relevant Expenses by the Head Offices of Enterprises that Consolidate (Combine) Their Tax Payments
关于合并(汇总)纳税企业总机构有关费用税前扣除标准的通知
This Circular addresses issues regarding pre-tax deduction of advertisement and publicity expenses, and public welfare and relief donations by the head offices of enterprises that consolidate (combine) their tax payments.
(Issued by the State Administration of Taxation on September 5 2005 and effective as of January 1 2005.)
(国家税务总局于二零零五年九月五日发布，自二零零五年一月一日起施行。)
Guo Shui Fa [2005] No.136
Offices of the State Administration of Taxation and local taxation bureaux of provinces, autonomous regions, municipalities directly under the central government and municipalities with independent development plans:
With a view to facilitating the implementation of unified brand strategies by group companies and promoting the strengthening of their operations and management, after consideration, we hereby notify you concerning the issue of the standards for the pre-tax deduction of relevant expenses by the head offices of enterprises that consolidate (combine) their tax payments as follows:
国税发 [2005] 136号
1. Standard for the Deduction of Advertisement Expenses Centrally Paid by Head Offices
The advertisement expenses centrally paid by a head office shall be deducted as incurred from the deduction limit for its centrally paid advertisement expenses and an adjustment in the tax payable shall be made for any amount in excess thereof when the head office calculates its income tax for the year in question and, in accordance with provisions, it may carry over the balance to future years without time limit.
各省、自治区、直辖市和计划单列市国家税务局、地方税务局:
The method of calculating the deduction limit for the advertisement expenses centrally paid by a head office is as follows: from the advertisement expense deduction limit calculated based on the specified standard for the combined sales (business) revenues of member enterprises that have obtained approval for the consolidated (combined) payment of their taxes, subtract the advertisement expenses actually deducted based on the specified standards by each of the member enterprises which consolidate (combine) their payment of taxes. The remainder is the deduction limit for the advertisement expenses centrally paid by the head office.
2. Standards for the Deduction of Publicity Expenses and Public Welfare and Relief Donations Centrally Paid by Head Offices
为有利于集团公司实施统一品牌战略，促进集团公司加强经营管理，经研究，现就合并(汇总)纳税企业的总机构有关费用所得税前扣除标准问题通知如下:
Reference may be made to Article 1 of this Circular on the method for deducting centrally paid advertisement expenses for the calculation and deduction of publicity expenses and public welfare and relief donations centrally paid by head offices before income tax. However, any amount exceeding the standard may not be carried over to, and deducted in, future years.
3. Scope of Application
一、总机构集中支付广告费的扣除标准
The foregoing deduction standards only apply to enterprises whose consolidated (combined) payment of enterprise income tax has been approved by the State Administration of Taxation.
This Circular shall be effective as of January 1 2005.
clp reference:3230/05.09.05prc reference:国税发 [2005] 136 号promulgated:2005-09-05effective:2005-01-01总机构集中支付的广告费，在其集中支付的广告费扣除限额内据实扣除，超过部分应在总机构当年计征所得税时进行纳税调整，并可按规定无限期向以后年度结转。
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