Accounting Treatment Of Cost Special Events In Income Tax Settlement

For taxpayers, there are always some new problems to be solved. Therefore, in view of some special matters related to the costs of taxpayers in the annual income tax settlement, I would like to sort out and introduce the relevant tax treatment, hoping to help you.

　　 1. Whether the overseas inspection fees for enterprise executives belong to Labor union expenditure ?

According to the provisions of the Opinions on the Withdrawal, Use and Management of Enterprise Staff Education Funds (CJ [2006] No. 317), the overseas investigation fees for senior executives cannot occupy staff education funds. Therefore, the overseas investigation fees of senior executives cannot be included in the staff education funds. So, is it possible or impossible to deduct the total amount? This mainly depends on whether the overseas inspection is related to production and operation. If it can be proved, it can be deducted in full. Otherwise, it will be regarded as personal expenditure and cannot be deducted.

Regulatory basis: Opinions on the Administration of the Withdrawal and Use of Enterprise Staff Education Funds (CJ [2006] No. 317), Article 8 of the Enterprise Income Tax Law (Presidential Decree No. 63), and Article 27 of the Regulations for the Implementation of the Enterprise Income Tax Law (State Council Decree No. 512).

　　 2. Can employer liability insurance be deducted before tax?

Employer's liability insurance is property insurance within the insurance category, but is it financial insurance as stipulated in Article 46 of the Regulations for the Implementation of Enterprise Income Tax? According to the provisions of Article 36 of the Regulations for the Implementation of the Enterprise Income Tax Law, except for the personal safety insurance premium paid by the enterprise for special workers in accordance with the relevant provisions of the state and other commercial insurance premiums that can be deducted according to the provisions of the competent financial and tax departments of the State Council, the commercial insurance premiums paid by the enterprise for investors or employees shall not be deducted. Although employer liability insurance is not directly paid to employees, it is a kind of insurance that is responsible for compensation for injury, disability or death caused by an employee engaged by the insured in the process of employment and engaged in work related to the business of the insured, or by occupational diseases specified by the country related to the business. Therefore, this kind of insurance should belong to commercial insurance and cannot be deducted before tax

Regulation basis: Article 36 of the Regulations for the Implementation of the Enterprise Income Tax Law (Decree No. 512 of the State Council).

　 3. Whether the payment of supplementary pension and supplementary medical care only to some employees can meet the standard Pre tax deduction ?

According to the provisions of the Notice of the Ministry of Finance and the State Administration of Taxation on Policy Issues Concerning Enterprise Income Tax Related to Supplementary Endowment Insurance Premiums (CS [2009] No. 27), the supplementary endowment insurance premiums and supplementary medical insurance premiums that can be deducted from enterprise income tax according to the standard must be owned by all employees, and only some employees are allowed to pay them without deduction before tax.

Regulatory basis: Notice of the Ministry of Finance and the State Administration of Taxation on Issues Related to Enterprise Income Tax Policies for Supplementary Endowment Insurance Premiums and Supplementary Medical Insurance Premiums (CS [2009] No. 27).

　　 four Certificate holder Can the social insurance expenses of (use qualification) be deducted before tax?

If the enterprise pays social insurance to the certified personnel, but does not pay salary, withhold personal income tax, and the certified personnel do not work for the company, then the personnel are not employees of the company, and their paid social insurance expenses are not allowed to be deducted before tax.

Regulation basis: Article 35 of the Regulations for the Implementation of the Enterprise Income Tax Law (Decree No. 512 of the State Council).

　　 5. If an enterprise has a contract dispute with another enterprise and appeals to the court, the court judgment requires the other party to issue an invoice, but the other party does not implement it. In this case, can the court judgment be confirmed as a legal and valid voucher?

There are two cases: first, if the court issues the termination of execution letter, stating that there is no way to obtain the invoice, the court judgment and the termination of execution letter can be used as legal and valid documents for pre tax deduction; Second, if the court has not issued the letter of termination of execution, because it has not been determined whether the invoice can be obtained, and the tax law needs to be determined, the pre tax deduction amount needs to be determined according to the actual amount incurred. Therefore, if there is no evidence of the court's termination of execution, the court's judgment cannot be used as a legal and valid voucher.

Regulation basis: Article 8 of the Enterprise Income Tax Law (Presidential Decree No. 63, 2007).

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