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Q：
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What is a cost splitting form?
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A：
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A cost splitting form is a voucher used to clarify the amount each party is responsible for when multiple entities jointly bear a cost. It plays an important role in cost sharing between enterprises.
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Q：
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Can the cost splitting form be used as a pretax deduction voucher for corporate income tax?
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A：
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For costs incurred by enterprises, other enterprises (including affiliated enterprises), and individuals jointly receiving taxable value-added services (hereinafter referred to as "taxable services") within the territory, if they share costs, they shall allocate costs according to arm's length principle. Enterprises shall use invoices and cost splitting forms as pretax deduction vouchers, and other enterprises jointly receiving taxable services shall use cost splitting forms issued by enterprises as pretax deduction vouchers.
If an enterprise and other enterprises or individuals jointly receive nontaxable services within the territory and adopt the method of cost sharing, the enterprise shall use external vouchers and cost splitting forms other than invoices as pretax deduction vouchers, and other enterprises jointly receiving nontaxable services shall use cost splitting forms issued by the enterprise as pretax deduction vouchers.
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Q：
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How to prove the reasonableness of cost allocation in the cost splitting forms?
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A：
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The allocation method must follow the principle of arm's length transactions to determine the allocation ratio or amount of each participant according to the principle of arm's length transactions. There should be clear allocation criteria, such as contracts, agreements, etc., to prove the reasonableness of allocation.
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Does the shared cost need to be related to the business activities of the enterprise?
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A：
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The shared cost should be directly related to the production and operation activities of the enterprise.
For example, the expenses incurred by jointly leasing a site for production and operation can be split and deducted, while jointly bearing consumption expenses unrelated to operation cannot.
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Q：
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What information is required to fill in the split form?
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A：
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The filling of the splitting form should be standardized and complete, including details of expenses, total amount, allocation situation, participant information, etc.
At the same time, relevant proof materials should be kept, such as copies of contracts, agreements, invoices, etc. for jointly accepting labor or services.
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