Our company plans to provide public health care for employees every three years. What is the difference between direct discovery of money and employee reimbursement bills in tax treatment?
A: Article 8 (1) of the Regulations for the Implementation of the Individual Income Tax Law stipulates that income from wages and salaries refers to wages, salaries, bonuses, year-end salary increase, labor dividends, allowances, subsidies and other income related to employment.
Article 10 stipulates that the forms of personal income include cash, physical objects, securities and other forms of economic benefits. If the income is in kind, the taxable income shall be calculated according to the price indicated on the obtained certificate; If the physical object without vouchers or the price indicated on vouchers is obviously low, the taxable income shall be verified with reference to the market price. If the income is securities, the taxable income shall be verified according to the par price and market price. If the income is other forms of economic benefits, the taxable income should be verified with reference to the market price.
Article 3 of the Notice of State Taxation Administration of The People's Republic of China on Deduction of Wages, Salaries and Employee Welfare Expenses (Guo Shui Fa [2009] No.3) stipulates that the employee welfare expenses stipulated in Article 40 of the Implementation Regulations include the following contents:
(1) Equipment, facilities and personnel expenses incurred by welfare departments of enterprises that fail to perform social functions alone, including equipment, facilities and maintenance expenses of staff canteens, staff bathrooms, barbershops, infirmary, nurseries, sanatoriums and other collective welfare departments, as well as wages, social insurance premiums, housing accumulation funds and labor expenses of welfare department staff.
(2) Subsidies and non-monetary benefits for employees in medical care, living, housing and transportation. , including medical expenses paid by enterprises to employees traveling in different places, medical expenses of employees of enterprises who have not implemented medical co-ordination, medical subsidies for employees to support their immediate family members, heating subsidies, heatstroke prevention and cooling expenses for employees, subsidies for employees' difficulties, relief funds for employees' canteens, and transportation subsidies for employees.
Paragraph 1 of Article 1 of Announcement of People's Republic of China (PRC) and State Taxation Administration of The People's Republic of China on Pre-tax Deduction of Enterprise Wages (Announcement No.34 of State Taxation Administration of The People's Republic of China, People's Republic of China (PRC) No.2015) stipulates that the welfare subsidies that are incorporated into the enterprise employees' wage and salary system and fixed together with wages and salaries are in line with Article 1 of Notice of State Taxation Administration of The People's Republic of China, People's Republic of China (PRC) on Deduction of Enterprise Wages and Employee Welfare Expenses (No.3 of Guoshuihan [2009]).
According to the above regulations, providing employees with regular medical care at public expense, directly giving employees discovery money and reimbursement bills, personal income tax is treated the same, and personal income tax should be withheld and remitted according to "salary and salary income"; If it is included in the wage and salary system of enterprise employees and the cash subsidy is fixed, it can be deducted in full as wages and salaries before enterprise income tax, and the reimbursement of bills should be deducted as the limit of employee welfare expenses.