The invoice for the "catering fee" for the staff dinner should be credited to the "payable remuneration - welfare expenses".

Borrow: payable compensation - welfare expenses?

Credit: Bank Deposit

Benefits carried forward in the month

Borrow: Administrative Expenses - Benefits?

Credit: Employee Compensation Payable - Welfare Expenses?

Lu Yun, inspector of the Department of Income Tax of the State Administration of Taxation (SAT), accepted online questions on the SAT website (April 11, 2012): According to the principle of the provisions of the Individual Income Tax Law (IIT Law), the welfare benefits given to individuals, no matter whether they are in cash or in kind, should be subject to IIT. However, at present, no individual income tax is levied in principle on benefits enjoyed collectively, indivisibly and in non-cash ways.

The Notice of the Ministry of Finance and the State Administration of Taxation on Comprehensively Pushing Forward the Pilot Project of Changing Business Tax to Value-added Tax (Cai Shui [2016] No. 36) The Implementation Measures for the Pilot Project of Changing Business Tax to Value-added Tax stipulates in Article 27 that: the input tax of the following items shall not be deducted from the output tax:

(1) Used in the projects of the simplified method of taxing, and the projects of the exempted value-added tax, Collective welfare or personal consumption of purchased goods, processing, repair and fitting services, services, intangible assets and real estate. The fixed assets, intangible assets and immovable properties involved refer only to those fixed assets, intangible assets (excluding other equity intangible assets) and immovable properties used exclusively for the above projects.

The taxpayer's consumption for socializing and entertainment is personal consumption.

(ii) Unusual loss of purchased goods, as well as related processing, repair and fitting services and transportation services.

(c) Purchased goods (excluding fixed assets), processing, repair and fabrication services and transportation services consumed in products in process and finished goods that are not normal losses.

(iv) Unusual loss of real estate, as well as purchased goods, design services and construction services consumed by the real estate.

(v) Purchased goods, design services and construction services consumed in the construction in progress of the immovable property which is not a normal loss. New construction, remodeling, expansion, repair and decoration of real estate by taxpayers are all real estate construction in progress.

(vi) Purchased passenger transportation services, loan services, catering services, daily residential services and entertainment services.

(vii) Other cases stipulated by the Ministry of Finance and the State Administration of Taxation.

Baidu Encyclopedia-Employee Compensation Payable