Careful Avoidance Of Benefits Tax Deduction And Tax Adjustment Declaration Tax Risk

The 2016 year corporate income tax settlement is about to begin. When taxpayers fill in the annual tax returns of enterprise income tax, they may feel that the "welfare of employees" matters as the three schedule of A105050's "detailed list of employee pay tax adjustments" is the simplest. But we should remind you here that seemingly simple is not necessarily simple, and the fewer words, the more entanglements, which also contains a tax risk that can not be ignored.

Is it possible to pay for welfare benefits in the case of donation? "Is it possible that the cost of any extra standard can be pferred to welfare costs if it does not exceed the deduction percentage?" "can the unit canteen buy meat, eggs and other foods from the market, and can not obtain the invoice, and whether it can be included in the welfare cost?" "can the expenses of the organization's staff and workers travel in the welfare cost?" in many tax exchange platforms, the word "welfare cost" is often referred to as "pferring employees to companies."

Filing of welfare benefits in the new version of income tax returns

In the case of enterprise pay and related staff welfare expenses, staff education expenditure, trade union expenditure and other tax adjustment projects, when the enterprise income tax is declared in annual tax returns, it should fill in the detailed list of the pay adjustment for employees' salaries (A105050).

In order to strengthen the comparative analysis of the enterprise income tax and the personal income tax of the employees' salaries, the enterprises that do not need to pay taxes for their remuneration items also need to fill in this form.

Specifically, in the third column of the first column "account load amount" of the "staff welfare expenditure", the amount of the staff and workers' welfare cost included in the cost accounting shall be reported.

The second set of "tax deduction rate" shall fill in the deduction ratio (14%) stipulated in the tax law.

In the fourth column, "tax amount" shall be filled in accordance with the tax law to allow the amount of deduction before tax. According to the first lines and fourth sets of the "salary payroll tax amount" x 14% and the third values of the table first, the minimum value should be reported.

The fifth column "tax adjustment amount" is the balance in column 1-4.

When it is necessary to pay attention, the deduction of employee benefits should be understood as "a specific expenditure specified on the ceiling".

Although the A105050 table stipulates that the balance of the amount of the employees' welfare expense that has been accounted for is deducted from the amount of allowable tax deduction before tax (which is allowed to pre tax deductible wage expenditure 14%) be used as the amount of tax adjustment reduction, it can not be understood simply that the amount of the tax on staff and workers' benefits should be understood to be the sum of the wage and salary expenditure that is allowed to be deducted before tax (14%).

Definition of benefits and allowable allowable benefits

The welfare cost of employees in enterprises refers to the welfare treatment expenses provided by the enterprises for employees except for the wages, bonuses, allowances, wages, salaries, supplementary funds, supplementary medical insurance premiums and housing provident funds, which are included in the management of the total wages, education expenses for employees, social insurance and supplementary endowment insurance (Nian Jin).

Currency should be the main form.

The following cash allowances or non monetary collective benefits may be deducted:

The enterprises that have not yet performed the social functions of separation, including the equipment, facilities and personnel cost incurred by the welfare department, include the equipment, facilities and maintenance costs of the staff welfare department such as the staff canteen, the staff bathroom, the barber room, the medical clinic, the nursery, sanatorium, and the wages and salaries, social insurance premiums, housing provident funds, and labor expenses of the staff in the welfare department.

Subsidies and non monetary benefits for health care, life, housing, pportation and so on for employees, including the cost of medical expenses paid to the workers by the enterprises, the medical expenses of the workers in the Medical Co ordinator, the medical subsidies for the employees, the subsidies for heating expenses, the cooling and heating costs, the difficult subsidies, the relief fees, the subsidy for the canteen, and the pportation allowance.

Other workers' welfare expenses, including burial allowance, pensions, settling expenses and visiting relatives' travel expenses, are also in accordance with other regulations.

In addition to the items listed above, other provisions conform to the provisions of the tax law.

To meet the requirements of pre tax deduction, such as legitimacy, authenticity, relevance, rationality and certainty, is indeed the cost of the welfare of all employees in the enterprise, and can be deducted as the welfare cost of employees.

Since 2014, the welfare allowance issued by the employees' salary system and fixed wages and salaries has been in line with the first provision of the State Administration of Taxation on the deduction of wages and salaries of employees and welfare of employees (No. 2009 of the state tax No. 3), which can be used as payroll expenses for enterprises.

The welfare allowance that cannot meet the above requirements should still be regarded as the welfare cost of employees, and the pre tax deduction should be calculated according to the regulations.

In 2006, the Ministry of Finance revised the general rules of enterprise finance, and since 2007, it has terminated the accounting rules for employee benefits in accordance with the total amount of wages and salaries 14%.

"Accounting standards for Enterprises No. ninth - employees' salaries" abolished the original "accounts payable welfare" accounting subjects, and included employee benefits in the salary range of employees (and accounting standards for small businesses).

Of course, in practice, the middle of the year can also be used for the first time, but after the end of the year, there should be no balance for the staff and workers welfare.

After the implementation of the enterprise income tax law, the employees' welfare cost of the original 14% according to the tax paid wages (the balance can be used for the next period) shall be changed to "part of the expenses of the employees' welfare expenses that the enterprises generate, not exceeding 14% of the total wages and salaries."

As a deduction of the base salary salary should be reasonable: a more standardized system of wage and salary has been drawn up; the wage and salary system is in line with the industry and regional level; wages and salaries paid in a certain period are relatively fixed; the adjustment of wages and salaries is carried out in a prearranged manner; the actual payment of wages and salaries has fulfilled the obligation of withholding and paying personal income tax according to law; and the arrangement of wages and salaries does not aim at reducing or evading taxes.

Its total does not include enterprises.

The social insurance funds and housing provident fund, such as staff education funds, trade union funds, endowment insurance, medical insurance, unemployment insurance, work-related injury insurance, maternity insurance, etc.

The original tax policy stipulates that the welfare cost should be 14% according to the taxable wage. Actually, it should be deducted before the deduction of the fixed proportion before tax, and how it is used or not has no effect on the enterprise income tax. Therefore, the relevant payment voucher is not the focus of tax inspection.

The current enterprise income tax law is based on the welfare cost before deducting tax. Actually, it is a specific expenditure. Whether the deduction is allowed will directly affect the tax base and tax payable of enterprise income tax.

Welfare payments and deductions should be used as payment vouchers. They should not be lumped together. They must not be completely invoices payable or deducted from invoices, nor can they be simply understood that all welfare benefits without invoices can be paid and deducted.

In practice, the payment voucher should be obtained in accordance with the principles of legality and reasonableness, in accordance with relevant tax laws, invoice management regulations and financial systems.

The payment of welfare benefits is to purchase taxable items such as taxable services or goods that are subject to business tax and value-added tax, such as buying materials issued during festivals, externally occurring expenses such as the kind of canteen utensils or other maintenance expenses paid by the welfare department, and the principle of obtaining invoices as payment vouchers.

The expenses paid to the employees or the funds allocated to the welfare department, such as difficult subsidies, heatstroke prevention and cooling, and canteen allowance, can be legally paid as receipts based on receipts.

It has been suggested that the canteen receipts issued by the canteen can be used as a pre tax deduction certificate when the dining hall is accepted by the enterprise. The other is that the "canteen is the non-profit internal organization within the enterprise" to explain that the receipt issued by the canteen can be used as a pre tax deduction certificate for the enterprise. I think this is not rigorous.

Because the real deduction is one of the important principles of the income tax deduction, the canteen receives the funds appropriated by the enterprise only when it receives the funds appropriated by the enterprise. The receipt is just a temporary receipt, and the legal certificate issued by the Seller shall still be obtained when the actual expenses occur.

The cost of the canteen is not even impossible to get the invoice from the canteen to the enterprise, but to the seller of the canteen shopping.

Therefore, the nature of the establishment of the canteen can not get the receipt issued by the canteen as a conclusion that the expenses of the canteen should be deducted from the enterprise's welfare before the enterprise's tax.

If it is contracted by a business catering agency staff canteen.

This has become one of the business activities of the catering organization. Enterprises should obtain invoices when paying related expenses.

The occurrence of an enterprise includes, but is not limited to, the following

It should not be used as a pre tax deduction for employee benefits.

Expenditures for entertainment, fitness, tourism, entertainment, shopping, gifts and other expenses paid by employees, such as expenses for commercial insurance, securities, stock rights, collectibles and so on, shall be fined, compensation and other expenses caused by personal actions, purchase of housing, payment of property management fees, and other expenses that should be borne by individuals.

We should strictly distinguish the expenses and deductions of welfare costs and other expenses, and we can not change the expenses that should be included in the welfare expenses of employees, such as the purchase of equipment, the repair cost, the paid family expenses and other expenses paid in the staff welfare expenses, to other branches of management expenses.

We can not afford to pay the expenses of the staff and workers, such as the gifts that the customers buy, the personal income tax paid, the social insurance premiums and other expenses not covered by the staff and workers' welfare expenses as welfare expenses.

It can be seen that the payment of welfare benefits and pre tax deduction also have strict regulations, which is not a "basket" that can exceed the cost of deducting standard, inconvenient payment of other subjects, the cost of not legally paying the certificate, or all the expenses that do not meet the requirements of tax deduction.

In order to guard against tax risks, the employee welfare cost of an enterprise should be set up separately and accurately calculated.

The payment of welfare benefits must conform to the provisions of the financial system and the tax law; the payment of welfare benefits should be based on real, lawful and effective credentials; at the same time, not all the welfare benefits that meet the prescribed requirements can be deducted in full before tax, and only be allowed to be deducted within the ratio of no more than 14% of the total wage and salaries.

Employee welfare is an auxiliary form of enterprise's compensation for employees. Enterprises should reasonably control the proportion of staff and workers' welfare expenses in the general income level according to the general historical level, and follow the principles of sound system, reasonable standards, scientific management and accounting standards.

Strengthening the financial management of employees' welfare cost and standardizing the pre tax deduction act is not only the need to protect the legitimate rights and interests of the state, shareholders, enterprises and workers, but also the need to maintain the normal order of income distribution, to promote the reform of the income distribution system, or the need for enterprises to pay taxes according to law, and to prevent tax risks caused by non-standard deduction.

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