Personal Tax Issues In Pportation And Communications Subsidies

In addition to travel allowance and meal allowance, employees in the company usually get other kinds of subsidies. First, let's talk about pportation and communication subsidies.

How should these subsidies be accounted for and how should the individual tax be controlled?

In principle, it depends on how these subsidies are used.

The characteristics of vehicles, such as cars and cellphones, are often difficult to distinguish between what is spent on the public and what is private expenses.

It is unthinkable that the phone calls are all used for private life, and there is no work phone. It is also unimaginable that at the same time, it is all work telephones and a private phone.

So, can you print out the details of the call and make a clear distinction between the public and the private?

It's more difficult to imagine!

When expenses can not be accurately accounted for, the only way is to "check".

Since the use of such subsidies is divided into a wide range and complicated situations, the State Administration of Taxation has authorized the provincial tax authorities to approve:

"Official vehicles used for personal service and communication system reform."

After deducting a certain standard of official expenses, the individual income tax is calculated according to the items of "wages and salaries".

"The deduction standard for official expenses shall be determined by the Provincial Local Taxation Bureau according to the actual occurrence of the taxpayer's official traffic and communications expenses, and shall be determined after approval by the provincial people's government, and reported to the State Administration of Taxation for the record."

(IRS [1999] No. 58)

That is to say, the provincial tax authorities should make calculations and submit them to the provincial government for approval.

This is equivalent to the hope that the system of subsidies in the public expenditure, the province will be a compulsory one size fits all.

For example, in the past, some provincial taxes have stipulated: "the pportation subsidies (including reimbursement, cash and other forms) issued by individual units to workers and staff members shall be collected according to the 30% of the total amount of pportation subsidies as personal income and the income tax collected from the wages and salaries of the month", which is equivalent to the ratio of public to private ratio of seven to three.

It is obviously too high and does not take into account the upper limit.

At present, most provinces stipulate the standard of the implementation plan of the government's official business vehicle system, that is, according to the government's standards, such as 1 thousand of a month, the official fee is 1 thousand, which exceeds the tax paid by some.

Because of the great differences between the various heads, the taxpayers should collect the documents on the local taxes in this province and carry them out accordingly.

2, what is the standard setting?

Of course, there are provinces that do not set standards.

What should we do if we fail to set standards? Some people believe that if we fail to set standards, we will pay a personal tax at 30%, as if the General Administration of large enterprises has approved such a caliber.

In the past, the Department of large enterprises of the General Administration of Taxation has said in a document that if the Provincial Bureau does not stipulate, it will be recognized as private tax on 30% basis.

(Business Letter No. [2009]33) but this document has long been invalid and its provisions do not apply to general enterprises, and it is also unreasonable.

Some tax officials believe that if the province does not stipulate the standard of public service fee, the official fee can not be deducted, and the individual tax should be paid in full.

Generally speaking, we all understand this, but if we learn the rules of Taxation, we will know that such a recognition is obviously wrong.

When there is no definite standard, the rule of taxation is that the company should have the actual accounting or reasonable accounting, if the accounting is unclear or not recognized by the tax inspectors.

Authorized to approve.

Some people think that the final approval of the tax inspector has the final say, is not the same as "no deduction"?

Of course not.

This is the difference between judging a tax official and a layman.

First of all, if the company's accounting fees really make sense, the tax inspectors may really approve a reasonable official fee without deducting the tax.

Of course, this generally requires tax inspectors to have a high level of business, to levy taxes according to law, and to harmoniously harmonized the relationship between tax and enterprise.

Secondly, if the tax officer approves the result is a penny not to deduct, causes to deduct the tax slightly, this matter is the tax payment which the tax authority's authorized power implementation causes, is not the enterprise and individual's illegal tax payment question, only involves individual to make up the tax, should not produce the overdue fine, should not be fined.

It is emphasized that one of the basic principles of tax rules is that unless there is a clear policy, all unaccounted receipts and payments can be settled through "approved".

3, do you need invoices?

After understanding the relationship between the public service fee and the personal tax in the subsidy, the next question is whether invoices are required when such subsidies are issued. Where do the tax authorities in many places require the payment of invoices when issuing subsidies, how do they understand such requirements?

Whether the company's expenditure should provide invoices depends on whether it has purchased goods and services externally.

It is a procurement behavior or a subsidy.

According to the "invoice management measures", enterprises shall obtain invoices from the payee when they buy goods, receive services and pay for other business activities.

The company grants subsidies to employees instead of purchasing products and services (employees' services to employers themselves are not in the scope of business tax and value added tax), so there is no need to obtain invoices.

If a tax official asks for an invoice and the enterprise has no invoices to offer, he shall defend himself in accordance with the provisions of the invoice management regulations.

It should be noted that, as mentioned above, if the enterprise does not calculate the official fee according to the standards of the provincial tax authorities, or if there is no relevant standard in the province, then the land tax will be approved when the personal income tax is collected.

The invoice is one of the evidences when the amount of public expenditure is approved. If there is no invoice, the enterprise and staff will be in an unfavorable position when the tax timing is fixed.

At this point, someone will involve the problem in the enterprise income tax, asking whether the above subsidies have no invoices. Can the enterprise income tax be paid?

First, there is no need for invoices to pay employees.

Secondly, the object of the subsidy is employees, whether employees use it for official business or private affairs, which will not affect the deduction of corporate income tax, but only affect individual income tax.

So how should accountants do the relevant vouchers and invoices?

Accounting should be handled strictly according to the company's subsidy system.

If the company's system stipulates that subsidies should be issued according to the standard of the head, it should be issued directly, and there is no reason to require the staff to provide invoices. If the company system stipulates that the employees can claim reimbursement within the quota, they can ask the staff to provide the invoices at the moment, but these invoices are the invoices of the staff expenses, which can only be calculated as the supporting original vouchers, and be distributed on the basis of them.

The above treatment, whether or not the employee provides invoices, calculates the personal income tax according to the calculation method of the preceding official expenses, and deduces the official fee, and the balance is incorporated into the monthly salary and salary tax.

4. How to handle private cars

In the specific implementation of private car public utility system, according to its cost, we can divide it into two categories: one is subsidized private cars, the other is private cars.

If the company's private car utility system stipulates that employees will use private cars for public utilities, companies pay monthly pportation subsidies, or reimburse a certain amount of standard oil fees, this is a subsidy type.

Its quality is still a subsidy which can not be understood as the company's own direct costs.

Subsidies for employees, whether direct or so-called "reimbursement", are applicable to the individual income tax calculated by the subsidy calculation method mentioned earlier.

For example, the company stipulates that the middle-level cadres' private cars are public, according to their level, the company reimbursed each month for its 1200 yuan oil fee.

This province stipulates that the standard of public service fee in pportation allowance is 500 yuan, of which 700 yuan should be incorporated into wage tax.

Whether or not it is reimbursed by invoices, it should be calculated in this way.

Another kind of private car is different from the public, I call it "cost type", that is, the employee's private car is public, but it does not pay the oil fee according to a certain standard, but actually reimbursement of all the expenses that happen in the use of oil, parking fees, tolls and so on.

Note that insurance is not acceptable. Insurance is not based on the cost of usage.

In this mode, reimbursement is made up of things, and there is nothing to do without reporting. Nothing is true. It will be a cost reimbursement process and evidence chain.

This kind of cost is the cost of the company itself, no longer the subsidy paid to the employees. At this time, it does not involve personal income tax.

However, it is because the company is buying the relevant oil and services abroad, so it needs to be reimbursed by invoices.

The difference between the two sides is that the former often shows that everyone has a share, month and month is equal, and has nothing to do with work, while the latter relies entirely on specific work, travel and business events.

There are always people who think that enterprises can do a lot of reimbursement procedures for each employee every month to reimburse oil fees and thus pay less personal income tax.

If it is not based on facts, this is a fake behavior, suspected of tax evasion.

It has entered another legal field.

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