Q: The unit selects outstanding employees and advanced departments and issues bonuses. The reward of excellent employees is included in the salary, and personal income tax is withheld and remitted. Is it necessary to withhold personal income tax for awards from advanced departments?
A: Paragraph 9 of Article 2 of the Individual Income Tax Law stipulates that personal income tax shall be paid on income from wages and salaries.
Paragraph 9 of Article 8 of the Regulations for the Implementation of the Individual Income Tax Law makes it clear that the contents of wages and salary income refer to wages, salaries, bonuses, year-end salary increase, labor dividends, allowances, subsidies and other income related to employment.
Therefore, if the advanced department award (group award) is given to an individual in kind or in cash, the bonus shared by the individual belongs to other income related to the post or post, and should be combined with the salary and salary of the current month to pay personal income tax.
For example, advanced department awards are not distributed to individuals, but organize tourism activities in the name of training courses, seminars, work visits, etc. According to the Notice of State Taxation Administration of The People's Republic of China, Ministry of Finance of People's Republic of China (PRC) on Personal Income Tax Policies for Enterprises to Offer Personal Rewards to Marketers by Freelance, and in accordance with the relevant provisions of China's current personal income tax laws and regulations, enterprises and units organize tourism activities in the name of training courses, seminars, work visits, etc. For excellent marketers, there are also marketing performance awards (including physical objects and marketable securities, etc. If an individual exempts travel expenses, the expenses incurred shall be fully included in the taxable income of the marketing personnel, and personal income tax shall be levied according to law, which shall be withheld and remitted by the enterprises and units that provide the above expenses. Among them, such rewards enjoyed by enterprise employees should be combined with current wages and salaries, and personal income tax should be levied according to the item of "income from wages and salaries"; Such rewards enjoyed by other personnel shall be regarded as current labor income, and personal income tax shall be levied according to the item of "income from labor remuneration".
Therefore, the personnel in the senior department of the unit should also incorporate the income from free travel into the salary income of the current month to pay personal income tax.
If the advanced department award is not distributed to individuals and is not used to organize employee activities, then individuals do not need to pay personal income tax because they have not made any income. Need to remind the unit that Article 35 of the Law on the Administration of Tax Collection stipulates that if the tax basis declared by the taxpayer is obviously low and there is no justifiable reason, the tax authorities have the right to verify the tax payable.