Income tax pre-tax deduction

Legal subjectivity:

According to the relevant provisions of the Enterprise Income Tax Law and its implementing regulations [1], the supplementary endowment insurance actually paid by enterprises for investors or employees belongs to "reasonable expenditure related to income" and is allowed to be deducted when calculating the taxable income of enterprise income tax within the scope and standards stipulated by the State Council and the competent financial and tax authorities. According to the above-mentioned laws and regulations, on June 2, 2009, State Taxation Administration of The People's Republic of China and the Ministry of Finance jointly issued the Notice on Issues Related to Enterprise Income Tax Policies for Supplementary Endowment Insurance and Supplementary Medical Insurance (Caishui [2009] No.27), which clarified the pre-tax deduction of enterprise income tax for supplementary endowment insurance. There are two main points: 1. The tax deduction allowed in Zhun [2009] No.27 stipulates that "since June 65438+1 October1day, the part of the supplementary endowment insurance premium paid by the enterprise for all its on-the-job or on-the-job employees shall be deducted when calculating the taxable income". When mastering the above policies, we should pay special attention to the following points: 1. A necessary condition for the deduction of full-time supplementary pension insurance is that the enterprise must be "all employees on the job or on the job", and if it is "some employees", it cannot be deducted. Among them, the understanding of "all employees" is consistent with the scope of reasonable wage and salary expenditure recognized by the enterprise income tax law. The State Administration of Taxation has made it clear in the Outline of the Spirit Propaganda of the New Enterprise Income Tax Law (Guo (2008)No. 159) that employees are "all personnel (including foreigners, Hong Kong, Macao and Taiwan personnel) who work in the payment unit and receive wages or other forms of remuneration for their actual services to the enterprise, including investors, regular employees, contract employees, temporary and quarterly workers, labor dispatchers and those who leave the unit. The judgment of the above employees can refer to accounting standards. Article 1 of "Guidelines for the Application of Accounting Standards for Enterprises No.9-Employees' Compensation" clarifies the scope of employees, specifically including: (1) all employees who have entered into labor contracts with enterprises, including full-time, part-time and temporary employees. (2) Persons who have not signed a labor contract with the enterprise but are officially appointed by the enterprise, such as members of the board of directors and members of the board of supervisors. (3) Under the planning and control of the enterprise, people who provide similar services to employees, although they have not signed labor contracts or have not been formally employed by the enterprise, such as employees who have signed labor contracts with relevant intermediaries. The above-mentioned "employment or employment relationship" generally refers to all continuous service relationships. The main income or a large part of the income of the incumbent or employee who provides services comes from the enterprise where he works, and this part of income basically represents the labor of the service provider. 2. The meaning of total wages "Notice on Issues Concerning Enterprise Income Tax Policies of Supplementary Endowment Insurance and Supplementary Medical Insurance Insurance" (Caishui [2009] No.27) stipulates that the part of supplementary endowment insurance paid by an enterprise for its on-the-job or on-the-job employees within the standard of not exceeding 5% of the total wages of employees shall be deducted when calculating the taxable income. But in the enterprise income tax law, the expression is "wages and salaries" expenditure. Therefore, when calculating the total wages, it should be determined according to the interpretation of "total wages and salaries" in the Enterprise Income Tax Law. According to the enterprise income tax law, the wages and salaries paid by enterprises to employees mainly include eight items. That is, (1) basic salary; (2) bonuses; (3) allowance; (4) subsidies; 5] year-end salary increase; [6] overtime pay; (7) Other expenses related to the appointment or employment of employees; Employed seasonal workers, temporary workers, interns, retirees and accepting external labor dispatch. (Note: The above items (1) to (7) are clearly stipulated in the second paragraph of Article 34 of the Regulations on the Implementation of Enterprise Income Tax, and item (8) is the Announcement on Several Tax Treatment Issues of Taxable Income of Enterprise Income Tax (People's Republic of China (PRC) State Taxation Administration of The People's Republic of China 20 12 AnnouncementNo. 15 No. Should be based on the "Regulations on the Composition of Total Wages" (OrderNo. National Bureau of Statistics 1990) and the "Notice of the Ministry of Finance on Strengthening the Financial Management of Employee Welfare Expenses" (FB [2009] No.242). (1) Basic wages Generally, the basic wages paid to employees by enterprises include two categories, namely hourly wages and piecework wages. (1) hourly wage refers to the labor remuneration paid to individuals according to the hourly wage standard (including regional cost of living allowance) and working hours. Including: (1) wages paid according to the hourly wage standard for the work done; (two) the basic salary and post (post) salary paid by the unit that implements the structural wage system; (three) the trainee salary of new employees (the living expenses of apprentices); (4) Sports allowance for athletes. (2) Piece-by-piece wage refers to the labor remuneration paid for the completed work according to the piece-by-piece wage standard. Including: (1) implementing wage systems such as excessive progressive piece rate, direct unlimited piece rate, limited piece rate and over-quota piece rate, and paying individual wages according to the quota and piece rate approved by the labor department or the competent department; (2) Wages paid to individuals according to the all-inclusive method of tasks; (3) Wages paid to individuals in the form of turnover commission or profit commission. ⑵ Bonus refers to the excess labor remuneration paid by enterprises to employees and the labor remuneration for increasing income and reducing expenditure. Among them: ① Production Award. Including over-production award, quality award, safety award, comprehensive award for assessing various economic indicators, early completion award, overseas dispatch award, year-end award, labor dividend, etc. The above-mentioned "year-end bonus" is explained by the General Administration in the Notice on Adjusting Individual Income Tax for Obtaining Annual One-time Bonus (Guo Shui Fa [2005] No.9, article 1): "Annual One-time Bonus" (including year-end salary increase, annual salary paid by annual salary system and performance salary paid by actual performance salary method) is based on the comprehensive assessment of enterprise economic benefits and employees' annual performance. ③ Labor Competition Award. Including all kinds of bonuses and in-kind rewards for model workers and advanced individuals; (4) reward wages for government agencies and institutions; ⑤ The Notice of the General Administration of Other Bonuses on Adjusting the Measures for Individual Income Tax on Individuals Obtaining Annual One-time Bonuses (Article 5 of No.9 [2005] of the State Administration of Taxation) stipulates that other bonuses refer to various nominal bonuses obtained by employees except annual one-time bonuses, such as semi-annual bonuses, quarterly bonuses, overtime bonuses, advanced bonuses and attendance bonuses. (3) Allowance refers to the allowance paid to employees due to special or extra labor consumption and other special reasons. Including: allowances to compensate employees for special or extra labor consumption (such as overhead allowance and underground allowance), health care allowance, technical allowance (such as workers' technical school teachers' allowance), annual performance allowance (that is, allowances or subsidies paid to employees according to their length of service) and other allowances (such as direct payment of food allowance, salary allowance for contract employees and book and newspaper fees). (4) Subsidies and subsidies refer to all kinds of price subsidies paid to employees to ensure that the wage level of employees is not affected by price increases or changes. 5. Year-end salary increase. Overtime pay refers to overtime pay and overtime pay paid according to regulations. (7) Other expenses related to employees' employment or employment Other expenses related to employees' employment or employment are also called wages paid under special circumstances. Including (a) according to the provisions of national laws, regulations and policies, due to illness, work injury, maternity leave, family planning leave, funeral leave, personal leave, family leave, regular leave, suspension from school, fulfilling national or social obligations, etc., according to the hourly wage standard or a certain proportion of the hourly wage standard; (2) Additional wages and reserved wages. The sum of wages and salaries actually paid according to the reasonable wage and salary judgment standard does not include the following expenses of the enterprise: (1) Employee welfare expenses ① Equipment, facilities and personnel expenses incurred by welfare departments in enterprises that have not yet performed social functions alone, including equipment, facilities and maintenance expenses of collective welfare departments such as staff canteens, staff bathrooms, barber shops, doctors' offices, nurseries and sanatoriums, and wages, social insurance premiums, housing accumulation funds and labor expenses of employees in welfare departments. (2) Medical expenses in the business field, medical expenses of 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, canteen subsidies for employees, and transportation subsidies for employees. (3) Other employee welfare expenses incurred in accordance with other regulations, including funeral subsidies, pension expenses, settling-in expenses (Statistics Bureau 1 ordered employees to pay certain travel expenses and settling-in expenses when transferring their jobs), family leave travel expenses, etc. (2) Staff education funds, (3) trade union funds, (4) social insurance fees such as old-age insurance, (5) medical insurance, (6) unemployment insurance, (7) industrial injury insurance, (8) maternity insurance, and (9) housing accumulation fund (according to the requirements of the national housing system reform, employees bear certain housing accumulation fund). Labor protection fee does not belong to; According to the requirements of the national family planning policy, pay the one-child subsidy; ; Expenditure paid to retirees according to retirement policy, etc. Although these expenses are paid to employees, they are not necessarily related to their labor. The implementation regulations specifically stipulate that it does not fall within the scope of wages and salaries. DecreeNo. 1990 of the National Bureau of Statistics stipulates that the following items are not included in the scope of total wages: (1) Invention and creation awards, natural science awards, scientific and technological progress awards, rationalization proposals and technological improvement awards and bonuses paid to athletes and coaches according to relevant regulations issued by the State Council; (2) Expenses related to labor insurance and employee welfare; (three) expenses related to the treatment of retired, retired and resigned personnel; (4) Labor protection expenditure; (five) remuneration, lecture fees and other professional remuneration; (six) food subsidies, meals, transit travel expenses and resettlement fees; (seven) tools and livestock compensation fees paid by employees who bring their own tools and livestock to work in enterprises; (eight) the risk compensation income of the lessee who implements the leasing business unit; (9) Dividends (including share dividends) and interest paid to employees who buy stocks and bonds of this enterprise; (ten) the medical subsidy and living allowance paid by the enterprise when the employee of the labor contract system terminates the labor contract; (eleven) the handling fee or management fee paid to the employing unit in addition to the salary of hiring temporary workers; (12) Processing fees paid to domestic workers and contracting fees paid to contractors according to processing orders; (thirteen) subsidies paid to students who participate in enterprise labor; (fourteen) the one-child family planning subsidy. In addition, it is necessary to judge the nature of the unit, whether it is an enterprise or a cause. Generally speaking, the proportion of enterprise annuity expenses in enterprises and institutions does not exceed112 (about 8.33%) of the total wages of employees in the previous year, and the proportion of occupational annuity expenses in institutions does not exceed 8% of the base salary in the previous year, and the maximum amount included in the current period generally does not exceed 3 times of the average quota of employees in the unit; We should also look at the unit annuity plan in detail and find the payment standard for supplementary old-age insurance. 3. The pre-tax deduction policy will be controlled by 5% from June 65438+1 October1in 2008, and it will still be handled according to the old regulations before 2008. That is, according to the provisions of Item (2) of Article 1 of the Notice of the Ministry of Finance on Issues Concerning the Connection between the Old and New Financial Systems of Enterprises (Caiqi [2008] No.34), "the part of the total contribution of enterprises that supplements the old-age insurance within 4% of the total wages shall be charged from the cost (expense)". Two. If it exceeds the standard, it shall not be deducted that the total payment of the enterprise exceeds "5% of the total wages of employees" as specified in the Notice of the Ministry of Finance on the Policy Issues Concerning Enterprise Income Tax on Supplementary Endowment Insurance and Supplementary Medical Insurance (Caishui No.200927), and it shall not be deducted before enterprise income tax. The Notice of the Ministry of Finance on Issues Related to the Connection between the Old and New Financial Systems of Enterprises (Caiqi [2008] No.34) clearly states that the part exceeding the prescribed proportion shall not be borne by the enterprise, but shall be deducted from the employees' personal wages by the enterprise. In connection with the provisions of the Notice on Issues Concerning Individual Income Tax on Enterprise Annuities and Occupational Annuities (Caishui [2065 438+03] 103), enterprises should pay attention to the following points: 1. The part exceeding the prescribed proportion shall not be deducted, otherwise it will face the risk of tax adjustment; 2. Some enterprises that exceed the prescribed proportion, even if they are not deducted before enterprise income tax, are not borne by enterprises, but by individuals. If the enterprise bears the burden, it should also fulfill the obligation of withholding and paying personal income tax. 3. The personal burden exceeding the prescribed proportion shall not be deducted before personal income tax when the enterprise declares full withholding. See "Personal Income Tax Treatment of Annuity Payment Link" for details of the provisions in Article 3 above.

Legal objectivity:

Individual Income Tax Law of the People's Republic of China

second

The following personal income shall be subject to personal income tax:

(1) Income from wages and salaries;

(2) Income from remuneration for labor services;

(3) Income from remuneration;

(4) Income from royalties;

(5) Operating income;

(6) Income from interest, dividends and bonuses;

(7) Income from property lease;

(8) Income from property transfer;