Is it necessary to withhold tax for work-related injury allowance and disability allowance?
Is it necessary to withhold tax on the work-related injury allowance and disability allowance paid?
Q: An employee of our company suffered from work-related injuries. According to the Regulations on Work-related Injury Insurance and the Measures for Implementing the Regulations on Work-related Injury Insurance in Jiangsu Province, is it necessary to withhold and pay personal income tax for the work-related injury medical subsidy and disability employment subsidy paid to the employee?
A: According to Article 4 of the Individual Income Tax Law (Presidential Decree No.48), welfare funds, pensions and relief funds are exempt from individual income tax.
According to the provisions of Article 1 of the Notice of the Ministry of Finance of State Taxation Administration of The People's Republic of China on Individual Income Tax Policies for Work-related Injury Insurance Benefits of Workers with Injuries (Caishui [2012] No.40), the work-related injury insurance benefits obtained by workers with injuries and their close relatives in accordance with the Regulations on Work-related Injury Insurance (the State Council Decree No.586) are exempt from individual income tax. Second, the treatment of work-related injury insurance mentioned in Article 1 of this notice includes the one-time disability allowance, disability allowance, one-time work-related injury medical allowance, one-time disability employment allowance, work-related injury medical treatment, hospital food allowance, transportation and accommodation expenses for medical treatment in other places, work-related injury rehabilitation expenses, assistive devices expenses, life care expenses, etc., as well as the death of employees due to work, and their close relatives shall be in accordance with the ".
Therefore, the one-time medical subsidy for work-related injuries and disability employment subsidy obtained by individuals in accordance with the Labor Contract Law and relevant labor laws, regulations and standards are exempt from personal income tax.
Q: How can I confirm the original value of personal property when I collect tax from the auction?
A: 1. According to Article 6 of the Decision on Amending the Individual Income Tax Law of the People's Republic of China (Decree No.48 of the President of the People's Republic of China): (5) For the income from the transfer of property, the taxable income shall be the balance after deducting the original value of the property and reasonable expenses from the income from the transfer of property.
The part donated by individuals to education and other public welfare undertakings shall be deducted from taxable income in accordance with the relevant provisions of the State Council. ?
2. According to the provisions of Article 3 of the Notice of State Taxation Administration of The People's Republic of China on Strengthening and Regulating the Collection of Individual Income Tax on Individuals Obtaining Auction Income (Guo Shui Fa [2007] No.38)? Is the income from personal property auction applicable? Income from property transfer? When calculating taxable income of a project, the taxpayer shall deduct the original value of the corresponding property, the taxes paid in the process of auctioning the property and the relevant reasonable expenses from its transfer income with legal and valid documents (official invoices supervised by the tax authorities, relevant overseas transaction documents or customs declaration documents, tax payment certificates, etc.).
(1) The original value of the property refers to the price obtained by the seller personally (subject to legal and valid vouchers). Specifically:
1. The price actually paid when purchasing the auction item if it is purchased through shops, galleries, etc.;
2. The price actually paid for the auction and the relevant taxes paid for the auction;
3. The expenses incurred for the collection of the auction items through ancestral collection;
4. The relevant taxes and fees incurred when the auction item is donated to him;
5. If it is obtained by other means, the original value of the property shall be determined with reference to the above principles.
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