Have You Done The Right Tax Treatment For The Expenses Of Heatstroke Prevention?

During the hot summer season, many enterprises have been spending on heat prevention and cooling in order to protect their health.

Many enterprises have made difficulties in tax treatment.

Some believe that they should be issued before they can be deducted in full, while others think that the money is good and the workers will get tangible benefits.

In addition, whether the expenditure on heat prevention and cooling is included in the cost of employee welfare, or as a branch of labor protection expenditure?

The notice of the State Administration of Taxation on the deduction of wages, salaries and welfare expenses for employees is stipulated in the national tax Letter No. 2009 (No. 3). The staff's summer temperature reduction fee is included in the staff welfare expenses, and the expenses of the staff and workers' welfare expenses that do not exceed the 14% of the total wages and salaries are deducted.

Even a reasonable expenditure can not be deducted before tax, and there are restrictive conditions.

The staff welfare cost that the enterprise produces should be accounted for separately.

It is important to note that the newly issued notice of the State Administration of Taxation on the pre tax deduction of wages and salaries of employees and welfare expenses of employees (State Administration of Taxation Announcement No. thirty-fourth 2015) stipulates: "the welfare allowance that is included in the salary and salary system of the enterprise employees and the fixed salary and the wages of workers" is 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. 3) of the State Tax Administration (the tax Letter No. 2009]), which can be used as the wages and salaries expenses of enterprises, and is deducted according to the regulations before tax.

The welfare allowance that can not meet the above conditions at the same time shall be regarded as the staff welfare cost stipulated in article third of Document No. 2009 of the state tax [3], and the pre tax deduction shall be calculated according to the provisions.

Article forty-eighth of the regulations on the implementation of the enterprise income tax law stipulates that a reasonable amount of labor protection expenses that the enterprise produces will be deducted.

The confirmation of labor protection expenditure needs to satisfy three conditions at the same time: first, it must be due to the needs of work; the two is to provide or provide for its employees; three, it is limited to work clothes, gloves, safety protection products, and heatstroke prevention products.

The labor protection expenditure that is allowed to be deducted must be the labor protection expenditure that the enterprise has actually taken place and is reasonable.

It can be seen that the heatstroke prevention and cooling products belong to the scope of labor protection expenditure, so as long as they are reasonable, they are allowed to pre tax deduction. There is no limit.

Of course, some enterprises may issue both simultaneously.

For example, the power supply enterprise provides the heating line cooling fee for the production line workers according to the standard of 60 yuan per person per month, and provides labor protection articles such as work clothes, refreshing drinks and medicines for workers during the high temperature period.

The regulations on the implementation of the personal income tax law stipulate that the expenses for heatstroke prevention and cooling provided by enterprises belong to the subsidies paid in wages and salaries, and should be included in the total wages to pay personal income tax.

However, the tax law stipulates that subsidies and allowances issued in accordance with the uniform provisions of the state may be exempted from personal income tax.

Providing or providing heatstroke prevention products for employees is a reasonable labor protection expenditure and can be exempted from personal income tax.

However, the personal income tax should be paid in accordance with the regulations for sunstroke prevention and cooling products for workers.

Stipulates that the welfare expenses of employees include the following three elements:

First, the enterprises that have not yet done the social functions separately, including the equipment, facilities and personnel cost incurred by the welfare department, including 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 Welfare Department staff.

The two is subsidies and non monetary benefits for health care, life, housing, pportation and so on for employees, including the expenses paid by the enterprises to the workers in the field, the medical expenses of the workers in the Medical Co ordinator, the medical subsidies for the employees, the allowance for heating expenses, the cooling off for the workers, the subsidy for the workers, the relief funds, the allowance for the staff canteen, and the pportation allowance for the workers.

Three, other workers' welfare benefits which are in accordance with other provisions include funeral allowance, pension, home security and family expenses.

From this we can see that the expenditure of heatstroke prevention and expenditure for enterprises can be issued as an employee welfare payment.

However, there is a limiting condition for the expenses of heatstroke prevention and expenditure in enterprises, which is that the total amount of staff and workers' welfare expenses can not exceed 14% of the total wage and salary.

In addition, the staff welfare cost of enterprises should be set up separately, and the accounts should be accurately calculated.

Without setting up the accounts accurately, the tax authorities will order the enterprises to make corrections within the prescribed time limit.

If the overdue period has not been corrected, the tax authorities may reasonably check the welfare cost of the employees.

If the total cost of employee welfare payments, including the employee's heatstroke prevention and cooling fee, exceeds the total salary and salary amount of 14%, then even a reasonable expenditure can not be achieved.

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Therefore, if the enterprise's staff welfare expenses are relatively large, or the enterprise can not accurately calculate the employee welfare cost, in order to prevent tax risks, the enterprise should not give workers the cost of sunstroke prevention and cooling, but should adopt the way of providing heatstroke prevention and cooling supplies.

The tax law stipulates that the reasonable labor protection expenses for enterprises will be deducted.

The confirmation of labor protection expenditure needs to satisfy three conditions at the same time: first, it must be due to the needs of work; the two is to provide or provide for its employees; three, it is limited to

Gloves, safety protection products, heatproof and temperature lowering products.

The labor protection expenditure that is allowed to be deducted must be the labor protection expenditure that the enterprise has actually occurred, and it must also be a reasonable labor protection expenditure.

It can be seen that sunstroke cooling products belong to the scope of labor protection expenditure, and as long as it is reasonable, it is allowed to pre tax deduction, there is no limit requirement, which is obviously the most advantageous for enterprises.

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