How To Deal With Personal Tax And Travel Allowance

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There is no clear definition or definition of travel expenses and work meals on the tax law. Is there any reference to it?

1, the Interim Measures for the management of special funds for anti avoidance (173 [2011]): travel expenses refer to the centralized investigation and analysis of anti tax evasion personnel who go out for investigation and evidence collection, anti tax avoidance cases, and participate in anti tax avoidance bilateral (multilateral) consultations, cooperate with tax departments outside the country (outside the territory) to carry out anti tax avoidance investigations, etc.

2. The financial management method of tax agents' Office (No. 209 of the national tax [1999]) has been invalidated, but the concept can be used as reference.

The cost of working meals refers to the expenses paid for providing working meals for the staff of the firm, including those who work for the firm.

3, the Ministry of Finance and the State Administration of Taxation Notice on the determination of the scope of the allowance for meal allowance (fiscal 82 [1995] No. 82): the allowance for misuse of meals refers to the meal fee received by the financial department according to the prescribed standards.

From this, we can have a relatively acceptable concept:

Generally, it refers to the accommodation, pportation, meals and incidental expenses incurred on business trips.

The cost of working meals generally refers to the cost of providing working meals for staff members.

The allowance for misgiving is that, according to the provisions of the financial department, a person who works in the urban and suburban areas, who can not work in the city or in the suburbs, and does need to eat out, according to the actual number of meals eaten according to the prescribed standards, should receive the wrong meal.

1, the provisions on certain issues concerning the collection of personal income tax (No. 89 of the national tax system [1994]) stipulate that travel allowance and miscarriage allowance are not the subsidies or allowances of the nature of wages or salaries, or the income of taxpayers who do not belong to the salaries and salaries of taxpayers themselves, and do not levy taxes.

2. The notice of the Ministry of Finance and the State Administration of Taxation on the determination of the scope of the allowance for meal allowance (fiscal 82 [1995] 82) further clarified that the subsidies and allowances issued by some units to employees in the name of a meal allowance should be incorporated into the personal income tax collected on the basis of monthly wages and salaries.

3, the 155 of the national tax issuance [1998] provides that every person's allowance and subsidy paid to the employees of the unit from the welfare and trade union expenses are not within the scope of the tax-free welfare expense, and shall be incorporated into the taxpayer's salary and salary income to collect personal income tax.

Obviously, the work meals as a unit provide meal benefits, does not involve the issue of personal income tax.

1, travel expenses:

Travel expenses are very complicated. What is more clear now is that there are clear standards for the government and public institutions. There is no specific provision for enterprises. Some local tax departments have only made some provisions in reference to the government and public institutions, but they lack strong legal support.

So, it has been difficult for financial personnel and tax officials.

Generally speaking, the travel expenses of enterprises are reimbursed by real accounts and reimbursed by "half packages" (usually by road expenses, lodging fees are actually reimbursed, meals are fixed on a daily basis, reimbursed) and "full package" Reimbursement (i.e., the total cost of fixed travel expenses is reimbursed).

(1) carry out the actual reimbursement: it can provide reliable and reliable legal evidence (such as tickets, boat tickets, air tickets, etc.).

(2) the implementation of the "half package" reimbursement can provide reliable and reliable legal evidence.

For the "subsidy" part, if there is no objection to the personal income tax exemption from the travel allowance granted according to the state regulations, if the standard is exceeded, the tax authorities may be deemed to be in disguised form of wage subsidies and allowances, and levy personal tax.

(3) the implementation of the "full package" reimbursement, if the travel allowance paid in accordance with the state regulations, is exempt from personal income tax. There should be no objection to the exemption from personal income tax. However, if the standard is exceeded, the tax authorities may be deemed to be in disguised form of wage subsidies and allowances, and collect personal income tax.

Due to the fact that there is no uniform legal or policy basis for the subsidy standard of travel expenses, the real and reasonable subsidy is not taxed in the management of personal income tax.

For this reason, it is easy to cause disputes among tax enterprises.

Suggestion: enterprises can apply for reimbursement, which is actually reimbursed, and can hardly be reimbursed. The enterprises should establish a subsidy standard for travel expenses (as close as possible to the national standard for issuing standards) and reimbursement system, and standardize the reimbursement procedures. As long as there is sufficient basis for seeking truth from facts, it is not possible to levy taxes on travel subsidies rather than in disguised form of wage subsidies and allowances.

2, the problem of meal allowance.

The allowance for meals is relatively simple. Generally, the quota is used, that is, the subsidy standard for each meal.

Like business travel subsidy, food allowance issued according to the state regulations is exempt from personal income tax.

However, in fact, there is no uniform legal or policy basis for the standard of enterprises' allowance for meals, only the principle stipulates that subsidies and allowances issued to employees in the name of meal allowance should be incorporated into the personal income tax collected from wages and salaries.

It is suggested that enterprises should set up the standard of allowance for misgiving (as close as possible to the national standard) and the subsidy system, and standardize the subsidy procedures, so long as they can have a solid basis for seeking truth from facts, indicating that the allowance for a meal allowance is not a disguised payment of wage subsidies or allowances, they can not be taxed.

3, personal (or part of the people) large payment, everyone has to pay, temporary travel allowance or meal allowance, it is very easy to be identified as a travel subsidy or in the name of a meal allowance in disguised form of wage subsidies, allowances, should be incorporated into the monthly wages and Salaries Income Tax levy personal income tax.

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