Tax Adjustment For Salaries And Welfare Expenses Of Enterprises

The Notice No. 34 of the notice on the pre tax deduction of wages and salaries of employees and welfare expenses for workers and workers, No. 1, provides that: "the welfare allowance that is included in the wage and salary system of the enterprise employees and fixed wages and salaries shall be in line with the first provision of the State Administration of Taxation on the deduction of enterprise wages and welfare benefits for workers and staff members (No. 3 of the state tax letter [2009]), which can be used as a payroll payment for enterprises, and shall be deducted according to the regulations before taxes." The policy loosened the scope of the tax law for wages and salaries and was very beneficial to enterprises.

But it is worth noting that the first section of No. 3 of the national tax letter [2009] provides five principles for the confirmation of the reasonableness of wages and salaries, so that the tax authorities can grasp the reasonableness of their judgments. Moreover, the Announcement No. 34 also stipulates that "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 the document No. 3 of the national tax letter [2009], and the pre tax deduction shall be calculated according to the provisions." In order to fully enjoy the policy, we must pay attention to two points: the welfare allowance that is included in the salary and salary system of employees and fixed wages and salaries in the future.

First, it is necessary to comply with the five principles of the first section of the national tax Letter No. 3 for wages and salaries, especially the obligation of withholding and paying personal income tax in accordance with the law in 2009. Otherwise, it is likely not to be recognized as wage and salary, but still be regarded as the welfare cost of employees, and the pre tax deduction should be calculated according to the regulations. Two, it is necessary to count the welfare benefits that are included in the wage and salary system of enterprises, fixed wages and salaries, and be included in the salary range according to the prescribed tax deduction when the enterprise income tax is declared. At the same time, according to the regulations, it should be used as the base for deducting the three items of the expenses of the staff and workers, the staff and workers, and the union funds.

Many enterprises in China have the habit of giving up the annual salary in December and the year of the year, and some even have to wait until the Spring Festival next year. However, because the fourth principles of the five principles stipulated in Article 1 of Article 3 of the national tax letter (2009) emphasize the need for "actual payment", if enterprises are strictly required before the end of each tax year, only the actual wage and salary can be included in the pre tax deduction, then the enterprise needs to pay tax adjustments for such wages every year, which not only increases the compliance costs of the tax law, increases the burden of tax administration, nor does it conform to the accrual basis principle.

For this reason, the 34 article second clearly states: "the annual payroll paid in advance to the employees before the end of the annual settlement is allowed to be deducted according to the regulations in the year of remittance." Obviously, this provision not only respects the actual situation of the late and year-end wages of enterprises lagging behind in the accounting year, but also benefits the enterprises and tax authorities.

Notice No. third of Article 34 clearly states: "the actual expenses of enterprises accepting external labor dispatching shall be deducted in accordance with the regulations in two situations: in accordance with the agreement (contract), the expenses directly paid to the labor dispatching companies shall be paid as labor expenses, and the expenses paid directly to the employees shall be taken as the expenses. Wages and salaries Expenditure and staff welfare expenses. The cost of wages and salaries shall be included in the base of the total wages and salaries of the enterprise as a basis for calculating the deduction of other related expenses.

The regulation not only changed the relevant provisions of the first circular issued by the General Administration of Taxation in 2012, No. fifteenth, but was about to be divided into the provisions of wages and salaries and employee welfare expenses, which were actually taken into account in the enterprises' acceptance of external labor dispatching employment, and changed to distinguish two cases of payment to labor dispatch companies and direct payment to employees.

In the future, any fee paid directly to the labor dispatch company in accordance with the agreement (contract) shall be paid as labor service expenses and included in the pre tax deduction after obtaining the labor invoice issued by the labor dispatching company. At this time, enterprises can not include the payment of labor services into the total wage and salary as the base for calculating the three expenses. However, after the labor company receives the service fee, the wages and salaries paid to the employees of the labor company can be regarded as the base of the three fees for the labor company.

And it is directly paid to employees by enterprises. Cost It should be strictly divided into wage and payroll expenditure and staff welfare expenditure, and the wage and salary can be used as the base of three charges. The provisions of article third of the 34 announcement enable enterprises to have a clear judgement basis and standard for the actual expenses arising from the employment of external labor dispatch services as labor expenses, wages and salaries, and staff and workers' welfare expenses.

Notice No. fourth of Article 34 provides that "this notice shall apply to enterprises in 2014 and subsequent years." Income tax Final settlement. The matters that have not been dealt with before the implementation of this notice shall comply with the provisions of this announcement. Therefore, as long as the enterprise meets the requirements of the notice, the relevant provisions of the notice can be chosen according to the principle of whether the enterprise is advantageous. In the next year, the enterprise income tax shall be collected and paid, and the enterprise must implement the provisions of the notice.

Notice No. fourth of Article 34 also stipulates: "the notice of the State Administration of Taxation on certain tax handling issues concerning the taxable income of enterprise income tax" (Bulletin No. fifteenth of the General Administration of Taxation 2012). The article emphasizes that this provision only repealed the relevant provisions of the Circular No. fifteenth of the State Administration of Taxation on the acceptance of external labor dispatch by Article 1 of 2012, and other provisions are still valid.

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