Tax refund is tax refund, referred to as tax refund. Refers to the 2% refund that an enterprise can get from the tax authorities when withholding employee income tax.

Article 9 of the Individual Income Tax Law of People's Republic of China (PRC) stipulates that "individual income tax shall be paid by taxpayers and withheld and remitted by the units or individuals who pay the income." Article 17 of the Individual Income Tax Law of People's Republic of China (PRC) stipulates that "the withholding agent shall pay a handling fee of 2% according to the tax withheld."

The expenses exempted from personal income tax should only refer to the withholding expenses obtained by the relevant personnel who have gone through the withholding formalities according to the regulations, and if the company uses this money as a bonus or collective welfare to reward non-related personnel, it should be incorporated into the employees' current wages and salaries to pay personal income tax.

Extended data

For personal income tax, the purpose of this handling fee is also clearly defined:

1, Notice of the People's Bank of China, State Taxation Administration of The People's Republic of China and the Ministry of Finance on Further Strengthening the Management of Withholding and Remitting Fees (Caixing [2005] No.365) "(6) The fee income obtained by the' third generation' units should be accounted for separately, included in the unit income, used for the management expenses of the' third generation', and relevant staff can also give appropriate rewards".

2. The Interim Measures for the Withholding and Remittance of Individual Income Tax (Guo Shui Fa [1995] No.065) stipulates that "the withholding agent shall pay a 2% handling fee according to the tax withheld. Withholding agents can use it to withhold and pay fees and reward taxpayers who have done well in withholding and paying taxes. "

According to the provisions of the above-mentioned documents, enterprises should obtain the refund of personal income tax withheld and remitted on behalf of handling fees for two purposes, one is for the management expenses of withholding and remitted work, and the other is for rewarding relevant staff.

Baidu Encyclopedia-Tax Refund (Tax Refund)