A:

There are two main ways to outsource the company canteen:

Mode 1: operating in the name of the contractor; Mode 2: Operating in the name of the contractor. Different modes of operation and tax-related treatment are different.

mode 1: the contractor operates in the name of the contractor, and the risk of operation shall be borne by the contractor. All purchases of the canteen are still carried out in the name of the contracted company, and the operating expenses of the canteen are accounted for by the company, so the canteen still belongs to the company's internal canteen. If the canteen serves only employees of the company, it will not be operated externally and will not be subject to VAT.

the remuneration paid by the enterprise to the contractor is the labor cost of the company or the labor cost of accepting labor dispatch;

free meals for employees are not shared by everyone, and the amount is difficult to determine. Generally, personal income tax is not levied.

method 2: the company outsources the canteen to an external professional catering service company, and the professional operating organization is responsible for the operation and management, bears the operational risks, and pays the contracting fee to the company on schedule, and the employees directly pay the dining fee to the contractor.

The company outsources the canteen, including the venue, equipment and management right, to a professional company. If the outsourcing agreement does not distinguish the service prices of different assets, the main target of the agreement is not the right to use real estate and movable property, but the management right of the canteen. Therefore, the management right (other management right) among other intangible assets that are sold to the outside world is applicable, and the tax rate is 6% based on the total price received, including the out-of-price expenses (including the water and electricity expenses paid by the company, etc.), which is not applicable. If the water and electricity expenses incurred in the company canteen are charged to a professional company, they will be taxed at the applicable tax rate for resale of water and electricity. If the lessor and the lessee provide free services to each other, their taxable sales should be confirmed separately according to the sales before the offset.

The dining expenses paid by enterprises and internal employees to professional companies should be taxed at the rate of 6% (3% is applicable to small-scale taxpayers) according to the living service-catering service.

if an enterprise pays its employees a monthly meal allowance, it is required to pay personal income tax.