Is the canteen fee subsidy credited to the welfare account or the salary account? Many people say, of course, it is welfare money. It is also said that if welfare expenses are included, the part exceeding 14% of the total wages shall not be deducted before tax. What should I do? Warmly remind you that as long as we incorporate the canteen subsidy into the salary system and distribute it together with the salary, it can be included in the total salary as the calculation base for calculating welfare expenses.
The 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 and Salaries and Employee Welfare Expenses (People's Republic of China (PRC) State Taxation Administration of The People's Republic of China Announcement No.34, 20 15) stipulates that welfare subsidies that are incorporated into the enterprise employee wage and salary system and distributed together with wages and salaries are in line with the provisions of Article 1 of the Notice of People's Republic of China (PRC) State Taxation Administration of The People's Republic of China on Deduction of Enterprise Wages and Salaries and Employee Welfare Expenses (Guoshuihan [2009] No.3), which can be regarded as an enterprise.
Therefore, as long as the canteen funds meet the requirements of Announcement No.34, even if the accountant records them as employee welfare funds, they can be adjusted to wages and salaries for tax declaration when the annual income tax is settled.