Exemption From Disputes Should Be Deducted Before Tax Deduction For Trade Union Funds.

Whenever a reference is made to the pre tax deduction of trade union funds, the answer is generally heard: the expenses generated by trade unions for educational activities such as education, sports, publicity and other activities for members and other staff members can be included in the Union's expenses by the expenses of the collective welfare of the trade union organizations, which are not allowed to be deducted from 2% of the total wages and salaries.

The author believes that the above answer is wrong.

In subsequent management and tax inspection, there is no need for tax enterprises to dispute whether an expenditure can be deducted from trade union funds.

The reasons are as follows.

Trade union funds

The fund for staff education has a typical common ground, which is dependent on the total wages and salaries of employees. Therefore, it is also known as "three additional charges" or "three charges".

The tax law, which is deducted before tax, is based on the thirty-fourth regulations for the implementation of the enterprise income tax law, and the reasonable salary and salary expenditure of the enterprise is allowed to be deducted.

The wages and salaries mentioned in the preceding paragraph refer to the remuneration paid by the enterprise to all employees in the form of cash or non cash in every tax year, including basic wages, bonuses, allowances, allowances, year-end pay increases, overtime wages, and other expenditures related to employees' employment or employment.

The fortieth provision stipulates that the expenses of staff and workers welfare expenses that the enterprises generate will not exceed 14% of the total wages and salaries.

The forty-first provision stipulates that the trade union funds allocated by enterprises shall not be more than 2% of the total wages and salaries.

The forty-second provision stipulates that except for other provisions provided by the Department of Finance and taxation of the State Council, the expenses of staff education expenses that the enterprise has generated will not exceed 2.5% of the total salary and salaries, and will be deducted. The excess part will be allowed to be deducted in the next tax year.

When we understand the deduction of "three charges" in the tax law, we may focus on the limitation ratio of pre tax deduction: 14% of staff welfare, 2% of union funds.

2.5%.

But if we look at it carefully, we will find that the trade union expenses are totally different from those of the staff and workers, and the education expenses of staff and workers.

Since July 1, 2010, the National Federation of trade unions has commissioned the Ministry of finance to print and print the exclusive receipts for trade fund receipts from the Ministry of finance's bill of supervisors.

Therefore, the notice of the State Administration of Taxation on the issue of pre tax deductions for trade union funds income tax (state tax administration Bulletin No. twenty-fourth 2010) stipulates that since July 1, 2010, the funds allocated by the staff and workers union allocated by enterprises shall not exceed 2% of the total wage and salaries, and shall be deducted from the enterprise income tax before the enterprise's income tax is issued on the basis of the "special receipt for trade union income" issued by the trade union organization.

The notice of the State Administration of Taxation on the collection of trade union funds by enterprises before the tax authorities deduct the credentials before tax (the thirtieth announcement of the State Administration of Taxation No. 2011) stipulates that, from January 1, 2010, in the areas where the tax authorities collect trade union funds, the trade union funds appropriated by enterprises can also be collected on the basis of legitimate and effective trade union funds, and the tax deduction is made before tax.

According to the above regulations, there are two ways of payment for trade union funds, which are directly allocated to the trade union organizations, obtaining the "special receipts for trade union funds income", and collected by the entrusted local tax authorities to obtain the collection evidence of trade union funds.

Therefore, in accordance with the existing tax law, trade union funds are not deducted from invoices but by special receipts (collection of receipts).

In practice, there are two sources of trade union funds which are used by the trade unions at the grass-roots level at the same time.

1. pay back first.

According to 2% of the total monthly wages and salaries, the trade union funds should be paid in full to the trade union organizations, and the special receipts for trade union funds should be appropriated, or the tax authorities entrusted to collect funds from the trade union should be paid to obtain the collection certificate for labor union funds, and the higher level trade union organizations will be allocated to the basic trade unions of the payment enterprises at the prescribed rate (usually 60%).

2. grading allocation.

After calculating the total amount of the total wages and salaries of 2% of the total monthly wages and salaries, the tax authorities will be paid to the tax authorities entrusted to collect trade union funds according to the local stipulation proportion (generally 40%), and obtain the collection funds for labor union funds. The retained part (generally 60%) is allocated to the grass-roots trade union at the same time by the enterprise, and the special receipt for the trade union funds issued by the grass-roots trade union of the unit is obtained.

According to the above analysis, enterprises are in accordance with the statutory requirements.

It is a necessary and necessary condition for the trade union funds to deduct the trade union funds before the enterprise income tax.

That is to say, the trade union funds that are allowed to be deducted before the enterprise income tax must meet the following three conditions without satisfying other conditions:

1. the amount shall not exceed 2% of the total wage and salaries.

2. pay in accordance with the regulations (pay to the higher level trade union organizations or the tax authorities that collect them, and assign them to the grass-roots trade unions of their units).

3. obtain valid and valid credentials.

It can be learned that, as far as an enterprise is concerned, after the payment of the trade union funds that have met the above three conditions at the same time, the deduction of the enterprise income tax before the cost has been completed. The trade union funds appropriated by the trade union are no longer within the accounting scope of the enterprise. Its ownership and use rights have been assigned to the higher level trade union organizations or the grass-roots trade unions of the enterprises that have paid the labor union funds.

As for the grass-roots trade unions of enterprises, after receiving the pfer of higher level trade union organizations or part of the union funds appropriated by the enterprises, how the grass-roots trade unions use this part of the funds, including the items of expenditure, the amount and the instruments obtained, will not affect the enterprise's deduction of the trade union's funds before tax, and the adjustment of the trade union funds deduction of the enterprises no longer because of the problem that the grass-roots trade unions use this part of the Union's funds.

It is important to note that the expenses incurred by enterprises in drawing up trade union funds within the prescribed proportion but not in accordance with the regulations, and the expenses incurred directly by the enterprises in line with the scope of the expenses of the trade union shall not be deducted from the trade union funds as a result of the tax deductible conditions that the party fails to meet the requirements of the tax law.

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