Q: All the patent subsidies granted by the government are paid by our company to R&D individuals. Should this part of the reward be withheld from personal income tax?
Answer: Article 2 of the Enterprise Income Tax Law stipulates that individual income tax shall be paid for the following personal income items:
1. Income from wages and salaries;
X. contingent income;
Eleven, other income determined by the financial department of the State Council.
Article 4 stipulates that the following personal income shall be exempted from personal income tax:
1. Bonuses in science, education, technology, culture, health, sports, environmental protection, etc. Awarded by the provincial people's government, the State Council ministries and commissions, China People's Liberation Army units at or above the military level, foreign organizations and international organizations;
Article 8 of the Regulations for the Implementation of the Individual Income Tax Law stipulates that the scope of personal income mentioned in Article 2 of the Tax Law:
(1) Income from wages and salaries refers to wages, salaries, bonuses, year-end salary increase, labor dividends, allowances, subsidies and other income related to employment.
(10) Accidental income refers to personal winning prizes, winning prizes, winning lottery tickets and other accidental income.
If it is difficult to define taxable income items for income obtained by individuals, it shall be determined by the competent tax authorities.
With reference to the provisions of Article 2 of the Measures for the Implementation of China Patent Award-winning Enterprises and Institutions in Guangdong Province (No.82 [2003] of Guangdong Province), the provincial government will reward the enterprises and institutions that have won the China Patent Award in each session of our province, and all the award-winning enterprises and institutions within the jurisdiction of Guangdong Province will enjoy all the incentive measures stipulated in these measures.
Article 3 stipulates that those who win the China Patent Gold Award will be rewarded with a lump sum of 6,543,800 yuan per person; Whoever won the China Patent Excellence Award will be given a one-time award of 500,000 yuan per person.
Article 7 stipulates that enterprises and institutions awarded by the provincial government shall use part of the bonus to reward the patent inventor or designer in the award-winning project, as well as units and individuals who have made substantial contributions to the implementation of the patented technology. The specific measures shall be formulated by the Provincial Intellectual Property Office.
According to the above regulations, the subsidies given by the government to enterprises should belong to the government subsidies obtained by enterprises, and the income obtained by individuals from the above rewards should belong to wages and salaries. Personal income tax shall be withheld and remitted at the applicable tax rate according to the income items of "wages and salaries" and the wages paid in the current month.