Enterprises Should Deal With Personal Loans In A Timely Manner.

At present, many enterprises "other receivables" are hung on personal loans to employees, part of which is to meet the employees' daily work borrowed funds, and part of the payments to employees for special matters, combined with personal income tax related tax policies, pen remind enterprises at the end of the year, the "other receivables" personal account handling should be concerned.

In 2003, the Ministry of Finance and the State Administration of Taxation issued the notice on regulating the collection and management of individual income tax of individual investors (Finance and tax [2003]158).

In 2005, in order to strengthen the management of individual investors borrowing money from their investment enterprises, the regulations on the management of personal income tax ([2005]120) stipulate that taxes on loans which are over 1 years and are not used for production and operation of enterprises are strictly regulated according to the relevant provisions. Since the documents are implemented from October 1, 2005, since October 1, 2005, the time limit for individual investors to borrow from their investment enterprises (exclusive proprietorship enterprises and partnership enterprises) has been over 1 years, rather than after the end of the tax year, and is not used for the production and operation of enterprises. The loan not returned to them can be regarded as the dividend distribution of enterprises to individual investors, and the personal income tax is calculated according to the items of interest, dividends and bonuses.

The financial personnel of a company can target investors' borrowing time and purpose through other accounts receivable.

In June 2008, the finance and taxation [2008]83 document made it clear that the employees' loans should not be returned at the end of the year. Individual investors, family members of investors, or other employees of enterprises should borrow money from enterprises to purchase houses and other properties, and register their ownership as investors, investors' family members or other personnel of the enterprise.

No matter whether the owner has paid the property to the enterprise without compensation or paid, the quality of the property is allocated by the enterprise to the individual in kind, and the individual income tax should be calculated according to law.

The policy will extend the scope of personnel involved in loans to investors and expand from investors to all employees. Enterprises should note that if employees' personal loans belong to the contents stipulated in Document No. 83, employees should be required to repay their loans in time before the end of the year.