Accounts for:
Borrow: administrative expenses - welfare expenses
Credit: Employee compensation payable --? Employee Benefit Expenses
Borrow: Employee Compensation Payable --? Employee Welfare Expenses
Credit: Bank Deposits
Taxation:
1. Individual Income Tax:
Legal Provisions:
According to the Circular of the Ministry of Finance and the State Administration of Taxation on the Individual Income Tax Policies Related to the Individual Rewards Offered by Enterprises to Their Marketing Personnel in the Form of Free Travel (Cai Shui [2004] No.11),
According to China's
In accordance with the relevant provisions of the current individual income tax laws and regulations of China, in the marketing activities of commodities, the enterprises and units of the marketing performance of outstanding personnel in the name of training courses, seminars, working visits and other tourist activities organized by the exemption of travel expenses, travel expenses on the implementation of personal incentives for marketing performance (including in-kind goods, securities, etc.), should be based on the full amount of the expenses incurred into the marketer's taxable income, the law levies individual income tax, and The enterprises and units providing the above expenses shall withhold and pay on behalf of the marketers.
The total amount of the travel expenses should therefore be equally divided among individuals, counted as wages for the month, and paid as " wages and salaries " for personal income tax. In the case of a non-employee, personal income tax is withheld and paid on the basis of " income from labor " (i.e. 20% tax rate).
2, enterprise income tax:
Because employee travel has nothing to do with production and operation, so the cost can not be deducted before the tax, will be in the remittance of the time to increase the taxable income. Regardless of how the enterprise accounting, accounting entries to do, employee travel expenses must be calculated personal income tax, and can not be deducted before tax.
Expanded InformationEmployee travel expenses are not tax deductible:
Travel expenses charged to the "Employee Welfare Expenses" program are not deductible. The Circular of the State Administration of Taxation on the Deduction of Wages and Salaries and Employee Welfare Expenses of Enterprises (Guo Shui Han [2009] No. 3) specifies the scope of the deduction of employee welfare expenses, including the following:
(a) Enterprises that have not yet implemented the separation of the function of running a social enterprise, the equipment, facilities, and personnel costs incurred by the welfare department within the enterprise, including the staff cafeteria, staff bathrooms, barbershops, infirmaries, nurseries, nursing homes and other facilities, including the staff cafeteria, staff baths, hair salons, medical clinics and other facilities, nurseries, nursing homes and other collective welfare departments, equipment, facilities and repair and maintenance costs and the wages, salaries, social insurance premiums, housing provident funds and labor costs of the staff of the welfare departments.
(2) Subsidies and non-monetary benefits for employees' health care, living, housing, transportation, etc., including medical expenses paid by the enterprise to employees for overseas medical treatment on official business, medical expenses for employees of enterprises that have not implemented medical coordination, medical subsidies for employees' dependent immediate family members, subsidies for heating expenses, heat-prevention and cooling expenses for employees, subsidies for employees' difficulties, relief expenses, subsidies for employees' canteens, and subsidies for employees' transportation. subsidies, etc.
(3) Other employee welfare expenses incurred in accordance with other provisions, including funeral subsidies, compassionate care, settling-in expenses, and travel expenses for family leave. Obviously, traveling expenses are not included. Therefore, the cost of travel can not be charged to the "employee welfare expenses".
The reason why the tax authorities did not raise any objection during the inspection is that the original domestic enterprise income tax regulations stipulate that the taxpayer's employee welfare expenses shall be deducted at the rate of 14% of the total taxable wages, while the Regulations for the Implementation of the Enterprise Income Tax Law stipulate that:
Enterprises shall incur expenditure on employee welfare expenses not exceeding 14% of the total salaries, and the portion of the total salaries that is allowed to be deducted shall be deducted at the rate of 14% of the total salaries, while the Regulations for the Implementation of the Enterprise Income Tax Law stipulate that, 14% of the total amount of salary is allowed to be deducted. The main change is that the focus of tax administration has changed from "calculation of deduction" to "occurrence". Before 2008, the tax authorities did not monitor the use of the expenditure, and the expenses could be calculated and deducted whether or not they were incurred, and there might be an unspent balance at the end of the year. However, the new income tax law requires the strengthening of the use of management, emphasizing the designated scope of "incurred", otherwise no deduction.
The Ministry of Finance and the State Administration of Taxation (SAT) - Circular of the Ministry of Finance and the State Administration of Taxation on the Individual Income Tax Policies Regarding Personal Incentives Offered by Enterprises to Marketing Personnel in the Form of Free Trips