(1) Daily expenses of the board of directors, including office expenses, accommodation expenses, transportation expenses, meals, post and telecommunications expenses and related insurance expenses of foreign directors during meetings and work in the enterprise.
(2) Expenses for board meetings include travel expenses, accommodation expenses, meals and related necessary expenses of board members and relevant staff during board meetings and work. In addition, the Ministry of Finance stipulates: "Chinese chairman, vice-chairman and directors who have not held real positions in foreign-invested enterprises may be reimbursed from the board membership fee of the enterprise during the board meeting, and other expenses and other remuneration may not be reimbursed in the enterprise."
Second, the relevant laws of directors' membership fees
Article 8 of the Enterprise Income Tax Law stipulates that reasonable expenses actually incurred by an enterprise, including costs, expenses, taxes, losses and other expenses, are allowed to be deducted when calculating taxable income.
Article 27 of the Regulations for the Implementation of the Enterprise Income Tax Law stipulates that the relevant expenditures mentioned in Article 8 of the Enterprise Income Tax Law refer to expenditures directly related to income.
The reasonable expenditure mentioned in Article 8 of the Enterprise Income Tax Law refers to the necessary and normal expenditure that conforms to the routine of production and business activities and should be included in the current profit and loss or the cost of related assets.
Referring to Article 1 of the Notice of Beijing Local Taxation Bureau on Defining Some Business Issues of Enterprise Income Tax, director membership fees refer to various expenses incurred by the highest authority of an enterprise and its members in performing their functions, including travel expenses and conference fees. According to the financial system and enterprise income tax policy, directors' dues can be deducted before tax in the subject of "management expenses", but there is no clear deduction standard at present. In the actual collection and management, we should pay attention to check whether the expenses deducted from the "director's membership fee" are true and legal, whether they belong to the expenses incurred in performing the functions of the board of directors, and any expenses unrelated to performing the functions of the board of directors shall not be deducted before tax.
Article 8 of the Notice of State Taxation Administration of The People's Republic of China Municipality on Printing and Distributing the Provisions on the Collection of Individual Income Tax stipulates that the income from directors' fees obtained by individuals as directors belongs to the nature of income from labor remuneration, and individual income tax is levied according to the items of income from labor remuneration.
Director's fee is the remuneration paid by the board of directors to the members of the board of directors, which belongs to the director's membership fee. Directors' dues are the expenses incurred by the board of directors and its members to perform the functions of the board of directors, which mainly include board members' allowances, meeting fees and travel expenses. The "directors' dues" deducted before tax shall be true and legal, and belong to the expenses incurred in performing the functions of the board of directors. Any expenses unrelated to the performance of the functions of the board of directors shall not be deducted before tax.
As can be seen from the above introduction, the director's membership fee includes the daily expenses of the board of directors, including office expenses and accommodation expenses of foreign board members during meetings and work in enterprises.
To sum up, many organizations will charge a certain membership fee. For companies and enterprises, it is no exception. For the board of directors, the highest management body of an enterprise, membership fees should also be charged, which are mainly used for some daily expenses and meeting expenses to ensure that directors can get good service during office hours and will not be bothered by public expenses.