Our company plans to provide employees with public health care once every three years. What's the difference between direct discovery 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 or 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 voucher or the price indicated on the voucher 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 shall 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 (No.3 [2009] of the State Administration of Taxation) stipulates that the employee welfare expenses stipulated in Article 40 of the Implementation Regulations include the following contents:
(1) The equipment, facilities and personnel expenses incurred by the welfare department of an enterprise that has not implemented social functions separately, including the equipment, facilities and maintenance expenses of the collective welfare departments such as staff canteens, staff bathrooms, barbershops, medical clinics, nurseries and sanatoriums, and the wages and salaries of the staff of the welfare department, social insurance premiums, housing accumulation funds and labor expenses.
(II) Subsidies and non-monetary benefits for employees' health care, living, housing, transportation, etc., including medical expenses paid by enterprises to employees in other places on business, medical expenses for employees in enterprises that 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, etc.
The first paragraph of Article 1 of State Taxation Administration of The People's Republic of China's Announcement on Pre-tax Deduction of Enterprises' Wages, Salaries and Employees' Welfare Expenses (No.34 of State Taxation Administration of The People's Republic of China Announcement No.2015) stipulates that the welfare subsidies that are included in the enterprise employees' wage and salary system and fixed together with wages and salaries are in line with the provisions of Article 1 of State Taxation Administration of The People's Republic of China's Notice on Deduction of Enterprises' Wages and Employees' Welfare Expenses (No.3 of Guoshuihan [2009]).
According to the above regulations, providing employees with regular public health care, directly giving employees discovery money and reimbursement bills, the treatment of personal income tax is the same, and personal income tax should be withheld according to "salary and salary income"; If it is included in the salary and salary system of enterprise employees and the cash subsidy is fixed together with the salary and salary, it can be deducted in full as the salary and salary before the enterprise income tax, and the bill reimbursement should be deducted as the employee welfare limit.