Subsidies and allowances are uniformly distributed to employees by units in accordance with state regulations, and personal income tax is generally not required. This income is tax-free. However, if the subsidy is paid to employees by the unit and included in the total wages, it needs to be taxed according to wages and salary income.
I. Subsidies
Subsidy refers to the financial contribution and price or income support provided by a member government or any public institution to some enterprises, in order to directly or indirectly increase the export of a product within its territory or reduce the import of a product within its territory, or cause damage to the interests of other members. Subsidies must be related to the government or public institutions. Even if it is not a state authority, it belongs to the government as long as it exercises government functions. The government includes the central government and lower-level governments.
2. Do you need to pay taxes on company subsidies?
Welfare items that can be exempted from personal income tax.
Difficult subsidies, relief funds, medical subsidies, employees' recuperation fees, work-related injury compensation fees, funeral expenses, pensions, one-child fees and employee resettlement fees paid from enterprise welfare funds according to regulations may be exempted from personal income tax.
The Notice of State Taxation Administration of The People's Republic of China, People's Republic of China (PRC) on Deduction of Wages and Salaries and Employee Welfare Expenses (Guo Shui Fa [2009] No.3) stipulates that there are three main types of employee welfare expenses that can be deducted before enterprise income tax:
1, including the equipment, facilities, maintenance costs, wages, salaries, social insurance premiums, housing accumulation fund, labor costs, etc. of collective welfare departments such as staff canteen, staff bathroom, barber shop, infirmary, nursery and sanatorium. Number of staff of the Welfare Department;
2. Subsidies and non-monetary benefits for employees in medical care, living, housing and transportation. , including medical expenses paid by enterprises to employees on business trips in other places, medical expenses of employees of enterprises who have not implemented medical co-ordination, medical subsidies for employees to support their immediate family members, heating subsidies, heatstroke prevention and cooling expenses for employees, subsidies for employees' difficulties, relief funds, canteen subsidies for employees, and transportation subsidies for employees;
3. Other employee welfare expenses incurred in accordance with other regulations, including funeral subsidies, pension expenses, settling-in expenses, family leave travel expenses, etc. Welfare items that are not exempt from personal income tax.
The following income does not belong to the scope of tax-free welfare expenses, and should be incorporated into the taxpayer's "wages and salaries" income for personal income tax:
1. Various subsidies and subsidies paid to individuals from welfare funds and trade union funds that exceed the proportion or base set by the state; (Note: The pre-tax deduction shall not exceed 14% of the total salary. If the amount does not exceed 14%, the enterprise income tax will not be increased. )
2. Subsidies and subsidies paid to employees of this unit from welfare funds and trade union funds;
3 units for individuals to buy cars, housing, computers and other expenses that do not belong to the nature of temporary living difficulties subsidies.
4. Transportation subsidy and communication subsidy: Personal income tax will be levied on official vehicles and communication subsidy income obtained by individuals due to the reform of official vehicles and communication system, after deducting certain standard official expenses. If it is paid monthly, personal income tax will be calculated by incorporating the income from "wages and salaries" in the current month; If it is not paid on a monthly basis, it will be decomposed into the month to which it belongs and combined with the income from "wages and salaries" in the current month to calculate individual income tax.
5. Meal supplement: In addition to wages and salaries, bonuses, year-end salary increases, labor dividends and allowances are also recognized as wages and salaries. Among them, year-end salary increase and labor dividends are taxed according to wages and salaries, regardless of type and acquisition.
Three. Matters needing attention when paying taxes
1. All social insurance premiums, housing accumulation fund and personal adjustment tax directly withheld from employees' wages should be included in the payment base.
2 units in the form of cash or bank deposits to pay transportation subsidies, telephone subsidies, lunch subsidies, holiday fees, high temperature, high altitude, underground, toxic and harmful special post allowances should be included in the payment base.
3, the unit through after-tax profit commission or dividends paid to individual employees' wages, should be included in the base pay.
4, the implementation of the basic wage system of workers, according to the turnover or operating performance of the commission income, should be included in the payment base.
5. Old-age insurance can be paid back, but it must bear the corresponding late payment fee. If the unit does not pay, you can ask the unit to repay. However, if the medical insurance is interrupted for 3 months, the continuous years cannot be calculated.
6. Medical insurance can be repaid. The country began to implement the medical insurance system around 200 1. Medical insurance is generally not required, but the regulations in different regions are different. Some areas stipulate that it must be paid, some areas stipulate that it can be paid, and some areas stipulate that it is not allowed to be paid before retirement. Whether it is necessary to pay depends on the regulations of the region.
7, unemployment insurance can be paid, but must be paid by the unit, individuals can not make up.
8. Work injury insurance can't make up for it. In case of * * * injury during the period of unpaid work-related injury insurance, the expenses incurred by the employee's work-related injury shall be borne by the unit.
9. Maternity insurance can be supplemented, and you can find a unit to supplement it. Otherwise, the company will have to pay maternity insurance. If not, you can go to the labor bureau to complain about the company.
Financial funds obtained from the financial departments and other departments of the people's governments at or above the county level that should be included in the total income and meet the following conditions can be regarded as non-taxable income and deducted from the total income when calculating the taxable income:
(1) The enterprise can provide funds disbursement documents, which stipulate the special purpose of funds;
(two) the financial department or other government departments that allocate funds have special fund management measures or specific management requirements for funds;
(3) An enterprise shall separately account for funds and expenditures incurred with funds.
legal ground
Individual Income Tax Law of the People's Republic of China
Article 4 The following incomes shall be exempted from individual income tax:
(a) science, education, technology, culture, health, sports, environmental protection and other aspects of the bonus. Awarded by the provincial people's government, the State Council ministries and commissions, China People's Liberation Army units at or above the military level, foreign organizations and international organizations;
(2) Interest on government bonds and financial bonds issued by the state;
(3) Subsidies and allowances issued in accordance with the unified provisions of the state;
(four) welfare funds, pensions and relief funds;
(5) Insurance compensation.
(6) Demobilized soldiers, demobilization fees and pensions;
(7) Resettlement fees, resignation fees, basic pension or retirement fees, resignation fees and retirement living allowances paid to cadres and workers in accordance with the unified provisions of the state;
(8) Income from diplomatic representatives, consular officials and other personnel of embassies and consulates in China who should be exempted from tax according to relevant laws;
(9) Income exempted from tax as stipulated in international conventions and agreements signed by the Government of China;
(ten) other tax-free income stipulated by the State Council.
The tax exemption provisions in Item 10 of the preceding paragraph shall be reported by the State Council to the NPC Standing Committee for the record.
Regulations for the implementation of the individual income tax law
Article 6 The scope of personal income as stipulated in the Individual Income Tax Law:
(1) Income from wages and salaries refers to wages, salaries, bonuses, year-end salary increase, labor dividends, allowances, subsidies and other income related to employment.
(2) Income from remuneration for labor services refers to income obtained by individuals from engaging in labor services, including design, decoration, installation, drawing, testing, medical treatment, law, accounting, consulting, lecturing, translation, manuscript review, painting and calligraphy, sculpture, film and television, audio and video recording, performance, performance, advertisement, exhibition, technical service, introduction service and brokerage service.
(3) The term "income from royalties" refers to the income obtained by individuals from publishing their works in the form of books, newspapers and periodicals.
(4) Income from royalties refers to income obtained by individuals from providing patents, trademarks, copyrights, the right to use non-patented technologies and other franchises; The income from providing the right to use copyright does not include the income from remuneration.
(5) Operating income refers to:
1. The income from the production and operation of individual industrial and commercial households, investors of sole proprietorship enterprises and individual partners of partnership enterprises comes from the income from the production and operation of sole proprietorship enterprises and partnership enterprises registered in China;
2 individuals engaged in paid service activities such as running schools, medical care and consulting according to law;
3 individuals from enterprises and institutions contracting, leasing, subcontracting, subletting income;
Individuals engaged in other production and business activities.
(6) Income from interest, dividends and bonuses refers to income from interest, dividends and bonuses obtained by individuals with creditor's rights and equity.
(7) Income from property leasing refers to income obtained by individuals from renting real estate, machinery and equipment, vehicles, boats and other property.
(8) The term "income from property transfer" refers to the income obtained by individuals from the transfer of securities, stock rights, partnership property shares, real estate, machinery and equipment, vehicles, boats and other property.
(9) Accidental income refers to personal winning prizes, winning prizes, winning lottery tickets and other accidental income.
Personal income, it is difficult to define taxable income items, determined by the competent tax authorities in the State Council.