General deduction items, reasonable expenses actually incurred by an enterprise related to income, including costs, expenses, taxes, losses and other expenses, are allowed to be deducted when calculating taxable income.

1. cost: sales cost, sales cost, business expenses and other expenses incurred by an enterprise in its production and business activities.

2. expenses: the business entertainment expenses related to the production and operation activities of the enterprise shall be deducted according to 6% of the amount incurred, but the maximum amount shall not exceed 5‰ of the sales revenue of the current year. Extended data

When confirming expenses, the boundaries between production expenses and non-production expenses should be divided first. Production expenses refer to the expenses related to the daily production and operation activities of enterprises, such as raw material expenses and labor expenses incurred in producing products; Non-production expenses refer to expenses that are not production expenses, such as those incurred in purchasing and constructing fixed assets, which are not production expenses.

secondly, we should distinguish between production cost and product cost. The production cost is related to a certain period, but has nothing to do with the products produced; The product cost is related to a certain variety and quantity of products, no matter which period it occurs.

thirdly, we should distinguish between production cost and period cost. Production expenses should be included in the product cost, while the period expenses should be directly included in the current profit and loss.

besides the definition, the recognition of expenses should also meet strict conditions, that is, expenses can only be recognized when the economic benefits are likely to flow out, which will lead to the decrease of assets or the increase of liabilities of the enterprise, and the outflow of economic benefits can be reliably measured.

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