Case 1: Accrued wages and salaries are not actually paid during the remittance year.
Announcement on Pre-tax Deduction of Enterprise Wages, Salaries and Employee Welfare Expenses Article 2 of State Taxation Administration of The People's Republic of China Announcement No.34 20 15 makes it clear that the annual wages and salaries actually paid by the enterprise to employees before the end of annual settlement are allowed to be deducted according to regulations in the remittance year. Considering that many enterprises' wages and salaries in 1 February are proposed in advance in the current year and paid in the following year1month, if the wages and salaries paid by enterprises before the end of each tax year are strictly required to be included in this year, enterprises need to make tax adjustments every year, which not only increases the taxpayer's tax compliance cost, increases the tax management burden, but also does not conform to the accrual principle. Therefore, the annual wages and salaries actually paid by the enterprise to the employees before the end of the annual settlement are allowed to be deducted before the annual enterprise income tax is remitted.
Case 2: Five insurances and one gold exceed the specified scope and standard.
Article 35 of the Regulations for the Implementation of the Enterprise Income Tax Law stipulates that the basic social insurance premiums and housing accumulation fund paid by enterprises for their employees in accordance with the scope and standards stipulated by the relevant competent departments of the State Council or the provincial people's government are allowed to be deducted. Supplementary endowment insurance premiums and supplementary medical insurance premiums paid by enterprises for investors or employees are allowed to be deducted within the scope and standards stipulated by the competent departments of finance and taxation of the State Council. The actual payment of five insurances and one gold beyond the prescribed scope and standard shall not be deducted before tax. What needs to be highlighted is that the "five insurances and one gold" paid by enterprises for employees vary from place to place. The criterion is that what is within the prescribed scope and standard shall be deducted according to the facts, and the part that exceeds the standard shall not be deducted before tax, and the taxable income shall be increased.
Situation 3: There are four conditions for distributing electronic red-envelope.
Electronic red-envelope distributed by enterprises belongs to giving gifts to individuals, which is randomly distributed for business promotion and advertising. At the same time, enterprises are likely to charge this expenditure as business promotion expenses, thus affecting the tax base of enterprise income tax. Refer to the requirements in Article 2 of the Implementation Criteria of Corporate Income Tax Settlement and Payment in 20 15 issued by Tianjin State Taxation Bureau: related tax issues related to pre-tax deduction of promotional vouchers paid to customers (individuals) by online e-commerce platform, and the promotional vouchers paid to customers by online e-commerce platform can be deducted before tax with relevant vouchers when the following conditions are met: 1. 2. The consumer's consumption record of actually using the coupon. 3. Details of the fund allocation of the actual preferential amount paid by the online e-commerce platform. 4. If personal income tax needs to be withheld and remitted, there should also be relevant supporting materials.
Case 4: Employee welfare expenses exceed the limit stipulated in the tax law.
The welfare expenses of enterprise employees refer to the welfare expenses provided by enterprises for employees except wages, bonuses, allowances, subsidies included in the management of total wages, employees' education funds, social insurance premiums, supplementary old-age insurance premiums (annuities), supplementary medical insurance premiums and housing accumulation funds. Article 40 of the Regulations for the Implementation of the Enterprise Income Tax Law stipulates that the employee welfare expenses incurred by an enterprise shall be deducted if they do not exceed 14% of the total wages and salaries. From this, it can be seen that the part of employee welfare expenses exceeding wages and salaries 14% shall not be deducted. It conforms to the accrual principle stipulated in the tax law, and meets the pre-tax deduction requirements such as legality, authenticity, relevance, rationality and certainty. It is indeed the expense of the welfare nature of all employees of the enterprise and can be deducted as employee welfare expenses. It should be noted that employee welfare expenses are deducted before tax within the limits stipulated in the tax law. First, there must be compliance bills. Second, there must be standards for enterprises to reimburse food expenses, and it must conform to common sense.
Situation 5: Commercial insurance premium without specific tax policy.
Commercial insurance premiums paid by enterprises for investors or employees cannot be deducted before tax. For those that are not listed in the tax law and belong to the category of commercial insurance, such as serious illness medical insurance and group accidental injury insurance, they cannot be deducted before enterprise income tax because there is no corresponding specific tax policy.
Situation 6: Employer's liability insurance premium paid indirectly to employees
Although the employer's liability insurance is not paid directly to employees, it belongs to an insurance for the employees employed by the insured to be responsible for compensation for injuries, disability or death caused by occupational diseases stipulated by the state related to business during the employment process, so this kind of insurance should belong to commercial insurance and cannot be deducted before tax.
Situation 7: Overseas insurance premiums paid by foreign companies for domestic employees
All kinds of overseas commercial personal insurance premiums and overseas social insurance premiums paid or borne by foreign-invested enterprises and foreign enterprises directly for their employees working in China, such as unemployment insurance premiums, pensions, savings, personal accident insurance fees and medical insurance premiums paid to overseas social insurance institutions and commercial insurance institutions, shall not be deducted before enterprise income tax. However, if the overseas insurance premium is paid to employees as wages and salaries, it can be deducted before enterprise income tax.
Situation 8: Non-mandatory personal insurance premium
The interpretation of "Regulations on the Implementation of Enterprise Income Tax Law" has the following provisions: the basis of such insurance premium must be legal, that is, the personal safety insurance that the national enterprise laws and regulations require enterprises to insure their employees. If it is not mandatory by the national laws and regulations, the insurance premium incurred by the so-called personal safety insurance that enterprises voluntarily insure their employees is not allowed to be deducted before tax. The scope of this kind of insurance premium, the level of insurance premium rate and the number of insured objects are all based on national laws and regulations. Insurance coverage needs to meet the following two conditions:
● The insurance basis is legal, that is, national laws and regulations require enterprises to insure employees. For example, the Coal Law and the Construction Law stipulate that coal mining enterprises (construction enterprises) shall pay work-related injury insurance premiums for employees to participate in work-related injury insurance according to law. Enterprises are encouraged to handle accident insurance for underground workers (workers engaged in dangerous operations) and pay insurance premiums. Before the introduction of further policies in State Taxation Administration of The People's Republic of China, accident insurance purchased by coal and construction enterprises for employees should still be regarded as the legal basis for insurance considering the particularity of the industry. However, the policies of various provinces and cities clearly stipulate that enterprises need to apply for personal safety insurance for special types of workers. Whether it is considered as the legal basis for insurance is uncertain, and it is best to confirm it with the competent tax authorities in advance.
● There is a clear legal and regulatory basis for insurance scope, insurance rate and insured object. Under normal circumstances, all provinces and cities stipulate clear insurance fees, insurance rates and insured objects for special types of work in coal and construction industries. Only when special types of work and special industries are insured according to regulations can enterprises obtain safety-related certificates for production and operation.
Therefore, before the scope of special types of work is defined, it is suggested that enterprises should deal with the pre-tax deduction of personal safety insurance premiums for employees of special types of work in accordance with the principle of prudence and communicate with the competent tax authorities, otherwise it will bring unnecessary tax risks.
Situation 9: Travel expenses of employees who have not withheld personal income tax.
The Notice of the Ministry of Finance and State Taxation Administration of The People's Republic of China on Individual Income Tax Policies for Enterprises to Provide Individual Rewards to Marketers by Free Travel (Caishui [2004]11No.) stipulates: "In commodity marketing activities, enterprises and units organize tourism activities for people with outstanding marketing performance in the name of training courses, seminars, work visits, etc. Marketing performance rewards (including physical objects and negotiable securities) for individuals by exempting travel expenses and travel expenses shall be fully included in the taxable income of marketers according to the expenses incurred, and personal income tax shall be levied according to law, which shall be withheld and remitted by enterprises and units that provide the above expenses. Among them, such rewards enjoyed by enterprise employees should be combined with the current wages and salaries, and personal income tax should be levied according to the items of "income from wages and salaries"; Such rewards enjoyed by other personnel shall be regarded as labor income in the current period, and personal income tax shall be levied according to the item of "income from labor remuneration". " The company shall withhold and remit personal income tax to the relevant rewarded personnel according to the item of "income from wages and salaries". It can be seen that the personal income tax is withheld and remitted according to the item of "income from wages and salaries" for the travel expenses charged by enterprises in "management expenses", which can be deducted as wages and salaries before enterprise income tax. It can be seen that the expenditure of organizing employees' collective tourism in enterprises is not directly related to income; Second, it does not meet the scope of pre-tax deduction of employee welfare expenses as stipulated in the tax law. Therefore, personal income tax is not withheld and remitted, which is not a reasonable wage and salary expenditure and cannot be deducted according to the item of "wage and salary income".
Situation 10: Accrued employee turnover compensation fee
The Reply on Pre-tax Deduction of Resignation Compensation for Internal Personnel Transfer of Huawei Group No.299 clearly states: According to the Enterprise Income Tax Law of the People's Republic of China and its implementing regulations and the Notice of State Taxation Administration of The People's Republic of China on Deduction of Wages and Salaries of Enterprises and Employee Benefits (Guo Shui Han [2009] No.3), Huawei's compensation for resignation matters. According to the company's financial system, the enterprise withdraws the resignation compensation fee for the employees, and adjusts the amount of the "accrued expenses" in the current year when the annual enterprise income tax is settled. According to the requirements of the principle of certainty of pre-tax deduction, the resignation compensation accrued by enterprises is not allowed to be deducted before tax, and it needs to be increased by tax. In the aspect of enterprise income tax, when calculating the resignation compensation in accounting, it is handled in the way of expected liabilities, and the exact amount of resignation compensation has not yet been determined. In the pre-tax deduction of enterprise income tax, it is necessary to follow the principle of certainty, that is, the amount of pre-tax deduction items is certain. Because the resignation compensation accrued by the enterprise does not meet the requirements of the principle of certainty, it is not allowed to be deducted from the tax, and it is necessary to increase the tax.
Situation 11: Make up the personal income expenditure with the recognition period of more than 5 years.
Article 6 of "Announcement of State Taxation Administration of The People's Republic of China on Several Issues Concerning Tax Treatment of Taxable Income of Enterprise Income Tax" (State Taxation Administration of The People's Republic of China Announcement No.2012 15) stipulates: "According to the relevant provisions of the Law of the People's Republic of China on Tax Collection and Management, enterprises shall make special provisions for expenditures that actually occurred in previous years and should be deducted before enterprise income tax according to tax regulations. Therefore, before the enterprise reimburses the employee's related personal income expenditure in the previous year, it should be calculated and deducted in the year from the date of recovery to the date of personal income expenditure, but the recovery confirmation period should not exceed 5 years.
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