According to the Individual Income Tax Law of People's Republic of China (PRC), all welfare expenses that meet the requirements of Item (4) of Article 4 of the Law are exempt from individual income tax.
Article 14 of the Regulations for the Implementation of the Individual Income Tax Law of the People's Republic of China further explains that the welfare funds mentioned in Item 4 of Article 4 of the Tax Law refer to the living allowance paid to individuals from the welfare funds or trade union funds of enterprises, institutions, state organs and social organizations in accordance with relevant state regulations. Guo Shui Fa (1998)No. 155 explained that the living allowance refers to the temporary living hardship allowance paid by the employer from the retained welfare funds or trade union funds in accordance with state regulations because certain specific events or reasons have caused certain difficulties to the normal life of the taxpayer himself or his family.
For example, subsidies for difficulties, relief funds, medical subsidies, employees' recuperation expenses, industrial injury compensation, funeral expenses, pensions, one-child expenses, and employees' resettlement expenses paid from enterprise welfare funds according to regulations can all be exempted from personal income tax.
II. Welfare items that cannot be exempted from personal income tax.
The Notice of State Taxation Administration of The People's Republic of China City, People's Republic of China (PRC) on Determining the Scope of Living Allowance (Guo Shui Fa [1998] 155) stipulates that the following income does not belong to the scope of tax-free welfare expenses, and should be incorporated into the taxpayer's "wages and salaries" income for personal income tax:
(a) all kinds of subsidies and subsidies paid to individuals from welfare funds and trade union funds that exceed the proportion or base set by the state;
(2) Subsidies and subsidies paid to employees of the unit from welfare funds and trade union funds;
(three) the unit for individuals to buy cars, houses, computers and other expenses that are not temporary subsidies.
For example, the subsidies for heating, cold protection and heatstroke prevention paid by enterprises from welfare funds in accordance with the relevant financial regulations of the state should be incorporated into the wages and salaries of employees in the current month and personal income tax should be levied together; Non-monetary collective benefits such as Mid-Autumn Moon Cake and Dragon Boat Festival Zongzi issued by enterprises from welfare funds should be converted into equivalent currency according to market price, purchase price or other prices, incorporated into the wages and salaries of employees in the current month, and personal income tax should be levied together; If an enterprise runs its own canteen or has a fixed lunch in the canteen, it shall settle accounts with the canteen, decompose the meal expenses into the name of each employee and incorporate them into the employee's salary and salary of the month, and collect personal income tax together.
In addition, holiday subsidies, monthly lunch expenses and subsidies without uniform meals, as well as monetized housing subsidies, transportation subsidies, vehicle reform subsidies and communication subsidies paid according to the standard or paid monthly are no longer regarded as welfare expenses, and should be included in the management of total wages and subject to personal income tax.
What does the enterprise employee welfare fund include?
Enterprise employee welfare expenses refer to the welfare expenses provided by enterprises for employees except wages, bonuses, allowances, subsidies included in the total wage management, employee education funds, social insurance premiums, supplementary old-age insurance premiums (annuities), supplementary medical insurance premiums and housing accumulation funds, including various cash subsidies and non-monetary collective benefits paid to or for employees, such as:
(1) All kinds of cash subsidies and non-monetary benefits paid or paid for medical care and life of employees, including medical expenses for employees on business trips, medical expenses for employees in enterprises that have not yet implemented medical co-ordination, medical expenses for employees to support their immediate family members, medical expenses for employees' recuperation, financial subsidies for self-run canteens or unified lunch supply for employees who have not run canteens, heating expenses subsidies that meet relevant financial regulations of the state, heatstroke prevention and cooling expenses, etc.;
(2) Subsidies for employees in difficulty, or fund expenditures established and managed by enterprises as a whole to help and relieve employees in difficulty;
(3) Other employee welfare expenses incurred according to regulations, including funeral subsidies, pension expenses, employee resettlement expenses, one-child expenses, family leave travel expenses and other expenses that meet the definition of enterprise employee welfare expenses but are not included in this notice.
Question 2: Is it necessary to pay personal income tax for employee welfare expenses? Notice of the Ministry of Finance on Strengthening the Financial Management of Enterprise Staff Welfare Fund
Caiqi [2009] No.242
Ministry of Finance 2009-11-12
Relevant departments of the Central Committee of the Communist Party of China, ministries and commissions of the State Council, directly affiliated institutions, General Office of the National People's Congress Standing Committee (NPCSC), General Office of Chinese People's Political Consultative Conference, General Logistics Department, Armed Police Headquarters, finance departments (bureaus) of all provinces, autonomous regions, municipalities directly under the Central Government and cities with separate plans, Finance Bureau of Xinjiang Production and Construction Corps, and centrally managed enterprises:
In order to strengthen the financial management of enterprise employee welfare funds, maintain the normal income distribution order, and protect the legitimate rights and interests of the state, shareholders, enterprises and employees, according to the Company Law, General Rules for Enterprise Finance (OrderNo. 1 1) and other relevant spirits, we hereby notify you as follows:
1. The welfare expenses of enterprise employees refer to the welfare expenses provided by enterprises for employees except wages, bonuses, allowances, subsidies included in the total salary management, employee education funds, social insurance premiums, supplementary pension insurance premiums (annuities), supplementary medical insurance premiums and housing accumulation funds, including the following cash subsidies and non-monetary collective benefits paid to or for employees:
(1) Cash subsidies and non-monetary benefits paid or paid for employees' medical care and life, including medical expenses for employees traveling in different places, medical expenses for employees in enterprises that have not yet implemented medical co-ordination, medical subsidies for employees to support their immediate family members, medical expenses for employees' recuperation, financial subsidies for self-run canteens or unified lunch supply expenses for employees who have not run canteens, heating subsidies that meet the relevant financial regulations of the state, heatstroke prevention and cooling fees, etc. ?
(II) Equipment, facilities and personnel expenses incurred by collective welfare departments within an enterprise that are not separated, including depreciation, maintenance and repair expenses of equipment and facilities in collective welfare departments such as staff canteens, staff bathrooms, barbershops, infirmary, nurseries, sanatoriums and dormitories, and labor expenses of staff in collective welfare departments such as wages and salaries, social insurance premiums, housing accumulation funds and labor expenses.
(3) Subsidies for employees in difficulty, or funds specially set up for helping and relieving employees in difficulty under the overall management of enterprises.
(4) Overall expenses for retirees, including medical expenses for retirees and other overall expenses for retirees. The expenses of retirees involved in enterprise restructuring shall be handled in accordance with the Notice of the Ministry of Finance on Financial Management of Resettlement Expenses for Employees in Enterprise Restructuring (Caiqi [2009]117). Unless otherwise stipulated by the state, such provisions shall prevail.
(5) Other employee welfare expenses incurred in accordance with regulations, including funeral subsidies, pension expenses, employee resettlement expenses, one-child expenses, family leave travel expenses, and other expenses that meet the definition of enterprise employee welfare expenses but are not included in this notice.
Second, the transportation, housing and communication benefits provided by enterprises for employees have been monetized, and the monthly housing subsidies, transportation subsidies or vehicle reform subsidies and communication subsidies paid according to standards are included in the total wages of employees and are no longer included in the management of employee welfare funds; If the monetization reform has not been implemented, the related expenses incurred by the enterprise shall be managed as employee welfare expenses, but according to the unified regulations of the state on the reform policy of enterprise housing system, it is not allowed to purchase and build housing for employees.
Holiday subsidies granted by enterprises to employees, and monthly subsidies for lunch without unified meals, should be included in the total wage management.
Three, employee welfare funds is an auxiliary form of enterprise labor remuneration for employees, enterprises should refer to the general level of history to reasonably control the proportion of employee welfare funds in the total income of employees. According to the provisions of Article 46 of the General Principles of Enterprise Finance, the enterprise shall not use the relevant expenses that should be borne by individuals as employee welfare expenses.
Fourth, enterprises should gradually promote the separation reform of internal collective welfare departments and solve the problem of employee welfare treatment through market-oriented methods. At the same time, combined with the reform of enterprise salary system, a complete labor cost management system will be gradually established, and employee welfare will be included in the total salary management of employees.
For the person in charge of the enterprise that implements the salary system reform such as the annual salary system, the enterprise should incorporate all kinds of welfare monetary subsidies that meet the requirements of the state into the overall management of the salary system, and the welfare monetary subsidies issued or paid shall be charged from the wages payable by individuals.
Five, enterprise employee welfare should generally be mainly in the form of money. Enterprises should strictly control their products and services as employee benefits. Enterprises such as telecommunications, electric power, transportation, heating, water supply and gas funded by the state, which regard their products and services as the welfare of employees, shall conduct fair transactions in accordance with the principle of commercialization, and shall not directly provide them to employees and their relatives free of charge or at a low price ..... >>
Question 3: Do I need to pay taxes on employee welfare funds? According to the new regulations, welfare expenses belong to personal income, and personal income tax is levied according to the regulations, but the related maternity allowance, dismissal notice and compensation are unnecessary ~!
Question 4: Is it necessary to pay personal income tax for employee welfare expenses? Subsidies and subsidies paid by units to employees from welfare funds and trade union funds should be incorporated into taxpayers' wages and salaries to collect personal income tax.
For details, please refer to the Notice of State Taxation Administration of The People's Republic of China City, People's Republic of China (PRC) on Determining the Scope of Living Allowance dcetax/...%B5%C4.
Tax-related risk warning of employee welfare funds dcetax/ntax/apps/case/index.php/article/displayarticle/articleid/7414.
Question 5: Is it necessary to pay a tax when distributing employee welfare funds? Those who do not need to pay employee welfare subsidies need to pay personal income tax, because employee subsidies belong to wages and salaries and are one of the taxation contents in the personal income tax law.
The types of subsidies related to subsidies and not subject to personal income tax are as follows:
One-child allowance;
The implementation of the civil service wage system, not included in the basic wage subsidies, subsidies and family non-staple food subsidies;
Child care allowance;
Travel allowance and meal allowance (refers to the meal fee paid according to the regulations of the financial department. If an individual is working in urban or suburban areas on business and cannot go to work or return to eat, it is really necessary to eat out, according to the actual number of meals missed, according to the prescribed standards).
Question 6: Is it necessary to pay personal income tax for the welfare funds paid by enterprises to employees? According to the new regulations, welfare expenses belong to personal income, and personal income tax is levied according to the regulations, but the related maternity allowance, dismissal notice and compensation are unnecessary ~!
Question 7: Do I have to pay personal income tax for welfare expenses? Employee welfare funds that should be included in the payable employee salaries should be included in the management expenses.
Borrow: management fee
Credit: cash
In this way, the amount of wages payable to employees will not increase. . This can pay as little personal income tax as possible.
Question 8: What welfare funds should be included in the calculation of personal income tax? First of all, we should know which expenses can be charged from welfare funds, so as not to be unclear.
The content of "employee welfare expenses" can be included in document No.3 of Guoshuihan (2009), and the scope of employee welfare expenses can be explained by enumerating methods. (You can also check the relevant explanations in Document No.3 (2009) to further understand the scope of welfare funds. )
In addition, it is also necessary to clarify the requirements of the local competent tax authorities for personal expenses. For example, some competent tax authorities allow direct collection of management fees, which are not used as the calculation base of personal income tax, and can also be collected according to the actual enterprise income tax; Moreover, some competent tax authorities can be charged as welfare expenses and do not need to be used as the calculation base of individual tax; However, the competent tax authorities with compensation must calculate and pay individual income tax as part of wages and salaries.
Therefore, different competent tax authorities have different requirements. Just ask the tax administrator and they will tell you.
Question 9: Do welfare funds need to pay taxes? Welfare funds, that is, enterprises, institutions, state organs and social organizations that have caused certain difficulties to the normal life of employees or their families due to certain specific events or reasons, are exempt from personal income tax from the temporary living difficulties subsidies paid to employees from the welfare funds or trade union funds retained by them in accordance with relevant state regulations.
The following income does not belong to the scope of tax-free welfare expenses, and should be incorporated into wages and salaries to collect personal income tax:
(a) all kinds of subsidies and subsidies paid to individuals from welfare funds and trade union funds that exceed the proportion or base set by the state;
(2) Subsidies and allowances paid to employees from welfare funds and trade union funds;
(3) The expenses that the unit buys cars, houses, computers, etc. for individuals are not temporary living difficulties subsidies.
According to Guo Shui Fa (1994) No.089, the following subsidies and allowances that are not in the nature of wages and salaries or income that is not in the taxpayer's own wages and salaries are not taxed:
① One-child subsidy;
(2) the implementation of the civil service wage system is not included in the total basic wage subsidies, differential subsidies and family non-staple food subsidies;
③ Parenting allowance;
(4) Travel allowance and meal allowance (refers to the meal allowance paid according to the regulations of the financial department. If an individual is working in the urban or suburban areas on business and cannot go to work or return to eat, it is really necessary to eat out, according to the actual number of meals missed, according to the prescribed standards).
Question 10: Is it necessary to pay a tax on employee welfare funds under the current system? First, at present, welfare funds are not allowed to be accrued, but are actually charged within the limit of 14% of total wages. Expenses are incurred as follows: debit: welfare expenses payable, and credit: cash or bank deposit, and the distribution at the end of the month is included in the corresponding subjects. Personnel on the production line are included in the manufacturing expenses, and management personnel are included in the management expenses. 2. The part that does not exceed 65,438+04% of the total wages is allowed to be deducted before income tax, and the part that exceeds income tax is subject to tax adjustment. According to the actual employee welfare expenses, it is divided into specific situations: the money and things paid to individuals should be included in the personal salary to calculate personal income tax, and those used for other welfare projects do not need to be included in the personal salary.