Because design fees are related to product marketing and corporate image, they can be recorded as sales expenses-business promotion expenses. The accounting treatment is as follows:

Debit: Sales expenses - business promotion expenses

Credit: cash on hand/bank deposits/accounts payable

Sales expenses - business The publicity expense account accounts for the expenses paid by enterprises to carry out business promotion activities, which mainly refers to advertising expenditures that are not disseminated through the media, including gifts and souvenirs issued by enterprises with corporate logos printed on them. The advertising expenses and business promotion expenses that can be deducted by the enterprise shall be calculated as usual and the deduction limit shall be calculated as usual. In addition, the advertising expenses and business promotion expenses collected by affiliated enterprises that have not been deducted may also be deducted by the enterprise.

Extended information

Standards for pre-tax deduction of business promotion fees

1. The deduction standard for general enterprises shall not exceed 15%.

According to Article 44 of the "Regulations on the Implementation of the Enterprise Income Tax Law", the eligible advertising expenses and business promotion expenses incurred by an enterprise shall not exceed A deduction of 15% of the current year's sales (business) income is allowed; the excess is allowed to be carried forward for deduction in subsequent tax years.

2. The deduction standard for the third category of enterprises is 30%.

According to the first article of the "Notice on the Pre-tax Deduction Policy for Advertising and Business Promotion Expenses" (Caishui [2017] No. 41), the manufacturing or sales of cosmetics, pharmaceutical manufacturing and beverage manufacturing (not including The advertising expenses and business promotion expenses incurred by enterprises (including alcoholic beverage manufacturing) shall be deducted if they do not exceed 30% of the sales (business) income of the current year; the excess shall be allowed to be carried forward for deduction in subsequent tax years.

3. Tobacco companies are not allowed to make pre-tax deductions.

According to the provisions of Article 3 of the "Notice on the Pre-tax Deduction Policy for Advertising Fees and Business Promotion Expenses" (Finance and Taxation [2017] No. 41), the tobacco advertising fees and business promotion expenses of tobacco companies shall be the same. No deduction is allowed in calculating taxable income.

Baidu Encyclopedia-Business Promotion Fee