A: Notice of the Ministry of Finance on Strengthening the Financial Management of Employee Welfare Expenses (Caiqi [2009] No.242)

1. Welfare expenses for employees of enterprises refer to welfare expenses provided by enterprises for employees except wages, bonuses, allowances, subsidies included in the management of total wages, education funds for employees, 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.

2. Equipment, facilities and personnel expenses incurred by the internal collective welfare department of the enterprise that has not been separated, including the depreciation and maintenance expenses of the equipment and facilities of the staff canteen, staff bathroom, barber shop, medical clinic, nursery, sanatorium, dormitory and other collective welfare departments, as well as the wages and salaries of the staff of the collective welfare department, social insurance premiums, housing accumulation fund, labor expenses and other labor expenses.

Even if the company outsources the canteen, it still has canteen-related expenses, but the scope of expenses is the depreciation of the canteen and water, electricity and gas fees. This part of the cost borne by the company is reflected in the fact that employees eat at low prices, so the above expenses of the company are still welfare in nature and should be included in the employee welfare funds.

Policy basis: For the pre-tax deduction of employee welfare expenses, please refer to State Taxation Administration of The People's Republic of China Guoshuihan [2009] No.3 Notice on Deduction of Wages, Salaries and Employee Welfare Expenses.

How to solve the invoice problem of canteen?

The first measure: outsource the canteen, and the contractor will make out the invoice.

An enterprise can outsource the whole canteen to a canteen contractor, who is responsible for preparing lunch for employees and purchasing all canteen ingredients, and the enterprise pays the canteen contracting fee on schedule and asks the canteen contractor for the full invoice.

The second measure: choose agricultural products production enterprises to buy canteen items.

Enterprises can choose the following suppliers, such as farms, rural specialized cooperatives, etc., to obtain invoices and directly record them. These agricultural products production enterprises can sell their own agricultural products tax-free.

The third measure: choose an agricultural product trading company.

Agricultural products trading companies can also be exempted from value-added tax, so they can also get invoices.

The fourth measure: find self-employed farmers.

Farmers engage in the production of agricultural products as self-employed, exempt from value-added tax and personal income tax, and they can also issue invoices.

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