We have a free lunch for employees, which is accounted for in the welfare expenses. In addition to the cost of entertaining guests, under the hospitality. The tax office is also so recognized.
Enterprise staff canteens are divided into three categories according to the nature: the first category belongs to the independent operation of the staff canteen. This type of cafeteria in addition to providing catering services for the unit's employees, but also provide catering services to the outside world, as if the hotel or catering company. According to the current "the same legal entity may have more than one independent business taxpayer within the business tax system", this type of canteens have to apply for tax registration in accordance with the law, to pay business tax on their income, and according to the provisions of the tax law to purchase and use catering invoices. The second category is the staff canteens operated by the catering companies of the resident enterprises. This type of canteen is essentially a "foreign aid" - the enterprise will outsource the catering services, the introduction of catering companies to provide catering services for the employees of the enterprise. These catering companies are formal enterprises, industrial and commercial, tax registration procedures are complete, for the business taxpayers, you can buy, use catering invoices. The third category is the internal cafeteria of the enterprise. This type of canteen only for the enterprise staff to provide catering services, the function of the service and not in the business, belongs to the internal behavior of the unit, does not belong to the provision of the "Provisional Regulations on Business Tax" provides the scope of services, no need to apply for tax registration, do not need to pay business tax, of course, there is no right to purchase, use of food and beverage industry invoices. This article mainly discusses the third category - enterprise internal canteen tax-related issues and its financial and tax treatment.
I. Relevant Policy Analysis
1. Description of Current Fiscal Policy
The internal canteen of an enterprise belongs to the category of employee welfare, and the national financial and tax policies have been clearly stipulated. The Ministry of Finance's Notice on Strengthening the Financial Management of Employee Welfare Expenses by Enterprises [2009] No. 242 stipulates that: "Employee welfare expenses of enterprises include the following cash subsidies and non-monetary collective benefits issued or paid to or for the employees:
(a) Cash subsidies and non-monetary benefits issued or paid for the employees' health care and living expenses, including the employees' expenses for medical treatment in the field on official business. (ii) Medical expenses for employees of enterprises that have not yet implemented medical integration, medical subsidies for employees' dependent immediate family members, convalescence expenses for employees, subsidies for self-operated staff canteens or expenses for uniformly supplied lunches in unoperated staff canteens, subsidies for heating costs in accordance with the relevant national financial regulations, and expenses for preventing heatstroke and cooling. (ii) Equipment, facilities and personnel expenses incurred by the enterprise's internal collective welfare departments that have not yet been separated, including the depreciation, repair and maintenance expenses of the equipment and facilities of the collective welfare departments such as employees' canteens, employees' bathhouses, hairdressing saloons, medical clinics, nurseries, sanatoriums and dormitories, as well as the labor expenses of the staff of the collective welfare departments, such as salaries and wages, social insurance premiums, housing provident funds, and labor costs.
The above two articles both mentioned "staff canteen". This emphasizes that the staff canteen is an important benefit for the staff of the enterprise, but also gives the majority of financial staff to deal with the income and expenditure of the staff canteen, pointing out the direction. But the article also clear: in the calculation of taxable income, the financial management of enterprise employee welfare expenses with tax laws and administrative regulations are inconsistent with the provisions of tax laws and administrative regulations should be in accordance with the provisions of the tax laws and administrative regulations of the calculation of tax.
"State Administration of Taxation on the issue of deduction of wages and salaries and employee welfare expenses" State Taxation Letter [2009] No. 3 "Third, on the issue of deduction of employee welfare expenses", the pre-tax deduction of welfare expenses also made clear provisions:
"Implementing Regulations," Article 40 of the provisions of the enterprise employee Welfare expenses, including the following:
(a) enterprises that have not yet implemented the separation of social functions, the equipment, facilities and personnel costs incurred by their internal welfare departments, including staff canteens, staff bathrooms, barber shops, medical clinics, childcare centers, sanatoriums and other collective welfare departments, equipment, facilities, and repair and maintenance costs and the staff of the welfare department's wages and salaries, social insurance premiums, housing and labor costs. provident fund, labor expenses, etc.
(2) Subsidies and non-monetary benefits for employees' health care, living, housing, transportation, etc., including medical expenses paid by enterprises to employees for overseas medical treatment on official business, medical expenses for employees of enterprises that do not have medical coordination, medical subsidies for employees' dependent immediate family members, subsidies for heating costs, summer heat-prevention and cooling expenses for employees, hardship subsidies for employees, relief expenses, subsidies for employees' canteen expenses, and transportation subsidies for employees. subsidies, etc.
(3) Other employee welfare expenses incurred in accordance with other regulations, including funeral subsidies, pension payments, settlement expenses, and travel expenses for family visits.
The article also stipulates that employee welfare expenses incurred by the enterprise should be set up separately and accurately accounted for. If there is no separate account book for accurate accounting, the tax authorities shall order the enterprise to make corrections within the specified period. If no correction is made after the deadline, the tax authority may reasonably approve the employee welfare expenses incurred by the enterprise.
Based on the provisions of the tax law, separately accounted for employee canteen welfare expenses can be deducted before the enterprise income tax, provided that they do not exceed 14% of the total wages and salaries. The State Taxation Letter No. 3 of 2009 specifies that "total wages and salaries" do not include employee welfare expenses, employee education expenses, labor union expenses, social insurance premiums such as pension insurance premiums, medical insurance premiums, unemployment insurance premiums, industrial injury insurance premiums, maternity insurance premiums, etc., and housing provident fund. Therefore, all cafeteria expenditures - including wages paid to cafeteria staff - charged by the enterprise in employee welfare expenses should not be counted as part of the enterprise's payroll.
2. Analysis of changes in the 14% standard of welfare expenses
Before the implementation of the new Enterprise Income Tax Law in 2008, the welfare expenses of employees were calculated based on 14% of the total taxable wages of the employees and deducted before the enterprise income tax; or the welfare expenses of the enterprises can be deducted before the tax regardless of whether they are used on the employees or not. --This has also led to the phenomenon of "withdrawing but not using" employee welfare expenses in many enterprises, resulting in employee welfare expenses not being used for the benefit of the employees. After 2008, according to Article 40 of the Regulations for the Implementation of the Income Tax Law, enterprises are allowed to deduct employee welfare expenses (note that the emphasis here is on expenses) up to 14% of the total wages and salaries. At the same time, it also specifies that the employee welfare expenses are changed from accruals to actual expenditures, and no deduction is allowed without expenditures. State Tax Letter [2008] No. 264 "State Administration of Taxation on the work of 2007 Enterprise Income Tax Settlement Supplementary Notice" has a clear articulation of the provisions of the 2007 enterprise employee welfare costs, is still based on the deduction of 14% of the total amount of taxable wages, the actual use of the portion of the balance of the employee welfare costs should be accumulated in the employee welfare costs. 2008 and the subsequent years of the employee welfare costs should be first offset against the accumulated prior years, the employee welfare costs should be offset against the accumulated prior years. Employee welfare expenses incurred in 2008 and subsequent years should first be deducted from the balance of employee welfare expenses accrued in prior years but not yet actually utilized, and any unused portion should be deducted in accordance with the provisions of the new Enterprise Income Tax Law. The balance of employee welfare expenses accrued but not yet used in previous years has been deducted before tax and belongs to the employees' rights and interests, and should be adjusted to increase the taxable income if the use is changed.
The tax law and the accounting system are "mutual care", and the new standard of "Enterprise Accounting Standard No. 9 - Employee Compensation" issued in 2006 abolished the "wages payable", "wages payable", "wages payable", "wages payable" and "wages payable". The new standard of "Accounting Standard No. 9 - Employee Compensation" issued in 2006 abolished the accounting accounts of "Salary Payable" and "Welfare Payable", and added the account of "Employee Compensation Payable", with "Salary" under it, "Employee Benefits", "Social Insurance Premiums", "Housing Provident Fund", "Labor Union Expenses", "Employee education expenses", "Compensation for termination of employee labor relations", "Other expenditures related to obtaining services provided by employees" and other eight detailed accounts, accounting for the enterprise's payable employee compensation items. This also includes employee welfare expenses in the scope of employee compensation.
Employee welfare expenses from allowing the extraction to only allow direct expenses, on the one hand, helps to eliminate the false phenomenon of the enterprise "mention but do not use"; on the other hand, it also has the function of "nibbling" the interests of the enterprise: as long as the flower is less than 14%, compared with the old accruals, the enterprise income tax deduction before income tax. On the other hand, it also has the function of "nibbling" at the interests of enterprises: as long as it spends less than 14%, compared with the old accrual policy, the pre-tax deduction of enterprise income tax will be less, and the tax payment will be more. This may create an incentive for enterprises to fully or overspend on welfare costs.
Two related tax-related issues
1. pre-tax deduction and its processing recommendations
Internal cafeteria welfare costs are based on legal bills. Enterprises paying welfare expenses to independently operated staff canteens or in-house catering companies can obtain formal catering invoices and record them accordingly. However, the enterprise internal cafeteria does not have the right to use the invoice, the enterprise in the internal cafeteria expenses are relatively complex. As follows:
(1) If the internal canteen independent accounting, the enterprise to pay the canteen's funding subsidies, the available internal funds can be recorded in the bill. And the internal cafeteria should establish an independent accounting system to account for its income and expenditure behavior and for inspection. Accounts processing is described as follows: the enterprise to the cafeteria allocated expenses or for the cafeteria to purchase facilities, pay the cafeteria staff wages, etc., in the enterprise accounts debit "payable to the employee compensation - welfare expenses", credit "bank deposits "If the employees are to bear part of the meal expenses, the enterprise should first deduct the meal expenses of the employees, debit "bank deposits" and credit "other payables - cafeteria", transfer the meal expenses to the cafeteria, and then transfer the meal expenses to the cafeteria. The enterprise should first deduct the employees' meal expenses, debit "bank deposit" and credit "other payables - canteen", and then transfer the employees' meal expenses to the canteen. Cafeteria received enterprises and employees to pay for meals, is included in the "meal income", the daily expenditure of all kinds of wood, rice, oil and salt and raw materials are included in the "meal costs", the billing requirements with the same internal cafeteria without independent accounting.
(2) If the internal canteen is not independently accounted for, its expenditures are included in the enterprise accounts, the bills are broken down as follows:
1) For industrial products, such as oil, salt, soy sauce and vinegar purchased in shopping malls, supermarkets and other business units, based on commercial invoices issued by the malls to the accounts. Since these industrial products products are taxable commodities, without formal invoices, they are not allowed to be expensed before tax.
2) for agricultural and sideline products, such as green vegetables, rice and noodles, beef and mutton, as well as fresh fish, etc., to distinguish between several situations to obtain invoices: First, the purchase of supermarkets and other business units, you can directly obtain commercial retail invoices into the accounts; Second, through the distribution of vegetable companies, you can also obtain formal invoices into the accounts; Third, the farmers' market or bazaar, to obtain the invoices of the following two ways: A. The management of the farmers' market or bazaar A. The management of farmers' markets or bazaars issue purchase vouchers, for example, in Suzhou, the internal canteen in the farmers' market procurement of agricultural and sideline products, with a list of purchases to let the market management department "knock a stamp" (stamp), you can be based on the accounts, the local tax authorities recognized. b. If the market management department does not give a "knock a stamp B. If the market management does not give a "knock a stamp", or the local tax department does not recognize these "white notes", the enterprise can only lose some tax points, to the relevant tax department invoices and according to the accounts.
Enterprise internal cafeteria expenses, vouchers are the key. According to the "State Administration of Taxation on the further strengthening of the management of ordinary invoices notice" Guo Shifa 〔2008〕 No. 80 stipulates that: in the daily inspection of taxpayers found to use invoices that do not comply with the provisions of the invoice, especially the invoices not filled with the full name of the payer, shall not be allowed to taxpayers for the deduction of the pre-tax, tax deduction, tax rebates and financial reimbursement of the export of tax. If the taxpayer fails to issue invoices, issues false invoices, produces and sells false invoices, issues invoices illegally, or obtains invoices illegally, the taxpayer shall be punished in strict accordance with the provisions of the "Measures for the Administration of Invoices of the People's Republic of China"; if he/she evades and cheats on taxes, he/she shall be punished in accordance with the provisions of the "Law of the People's Republic of China on Taxation Levies Collection and Administration"; and if he/she is seriously in conflict with the criminal law, he/she shall be transferred to the judicial organs for legal treatment.
The pre-tax deduction of subsidies for internal canteen funds for employees, the tax law does not give a standard, but in practice enterprises must grasp two principles: First, the overall standard of 14%, all the welfare costs can not be exceeded, exceeding the standard will be adjusted for tax. The second is to seek truth from facts, internal cafeteria expenses incurred to comply with the principle of reasonableness of the tax law, and in line with the real situation of the enterprise, falsification will also be subject to tax adjustments or other penalties.
Generally, non-independent accounting canteens are not allowed to handle monetary funds, by the corporate finance on behalf of the management and accounting. Cafeteria received enterprises and employees to pay for meals, debit "financial transactions", credit "meal income"; procurement of a variety of raw materials, such as wood, rice, oil and salt, debit "inventory commodities", credit The purchase of raw materials such as wood, rice, oil and salt will be debited to "Inventory Goods" and credited to "Financial Transactions", and the cost of meals will be debited to "Cost of Meals" and credited to "Inventory Goods" when they are used.
2. Other major taxes involved in the handling of related issues
(1) Involving value-added tax. According to Article 10 (1) of the Provisional Regulations on Value-added Tax (VAT): Deduction is not allowed for purchased goods or taxable services used for non-VAT taxable items, VAT-exempted items, collective welfare, or personal consumption; Deduction is also not allowed for the "transportation costs of goods" which are not directly related to production. The internal canteen belongs to the welfare department, its purchases of goods whether inventory or fixed assets, its input tax is not allowed to deduct, to be included in the welfare expenses.
(2) Business tax is involved. If the internal canteen of the enterprise provides catering services for the staff of the organization and at the same time provides catering services to the outside world, then it becomes a business organization, and it should register for tax according to the law and pay business tax on its external income.
(3) Involving personal income tax. The current welfare policy is oriented to: public **** welfare does not involve personal tax, but if it is to be issued to individuals, it should be incorporated into the income of the month's wages and salaries, and pay personal income tax. Cai Qi [2009] No. 242 especially emphasized: enterprises to employees issued holiday grants, not uniform meal and lunch subsidies issued on a monthly basis, should be included in the total wage management. The five principles of "reasonable wages and salaries" listed in the State Taxation Letter [2009] No. 3 also make it clear that the monthly lunch subsidies for enterprises that do not uniformly provide meals, whether they are directly paid to the individuals or paid after the individuals have provided bills for reimbursement, belong to the regular compensation of labor costs in accordance with the standards, and have a "universal system" of benefits. It is the nature of "universal" wages, and should be included in the total wages of employees, and calculate and pay personal income tax.
For the issue of missed meal allowance, the Ministry of Finance and State Administration of Taxation on the scope of missed meal allowance to determine the issue of the Notice of Cai Shui Zi [1995] No. 82 has long been clarified as follows: the State Administration of Taxation [1994] No. 89 document stipulates that the tax is not taxed missed meal allowance, refers to the provisions of the financial sector, the individual in the city on official business in urban areas, suburban work, can not be in the workplace or return to the meal, it is really necessary to eat out If an individual is working in urban or suburban areas on official business, he or she cannot eat at the work unit or return to the work unit and really needs to eat out, he or she shall receive the meal allowance according to the stipulated standard based on the actual number of meals missed. The subsidies and allowances given to the employees by some organizations in the name of meal allowance should be incorporated into the wages and salary income of the month for personal income tax.
3. Additional functions of the internal cafeteria and its operational recommendations
(1) The internal cafeteria has the function of mitigating business hospitality
Business hospitality is a restrictive cost, many enterprises exceed the standard, those who set up the internal cafeteria, the hospitality activities will be transferred to the "family dinner". In the environment of dietary insecurity, the internal cafeteria "family feast", in addition to "cheap and good quality" to save money, but also more or less cohesion of some of the family. But the prerequisite is: these "family dinner" expenses, should be adjusted from the welfare costs to business hospitality, in accordance with the amount of 60% of the amount incurred in the pre-tax deduction, the total maximum shall not exceed the current year's sales (operating) income of 5 ‰. The cost of the "family dinner" is lower, which will reduce the business entertainment expenses to a certain extent.
(2) internal cafeteria practical advice
Some enterprises in the charge of welfare costs, often by the tax authorities to adjust. For example, an enterprise will be the end of the year staff dinner costs included in the employee welfare costs - actually should also be credited to this account, but was required by the tax authorities to adjust the inclusion of business hospitality expenses. The reason is that a catering invoice issued by a restaurant attached to the voucher is not sufficient to prove that it is a year-end dinner for employees, so the account should be adjusted. If the voucher had been accompanied by the "Employee Year-End Dinner Sign-in Book" and other relevant documents, I believe it would not have been adjusted.
The internal canteen should be inspired by: in addition to the standardization of vouchers, in order to prevent adjustments, but also to accumulate the relevant indirect vouchers, that is, vouchers to prove the vouchers, the expenditure activities to confirm. This requires the establishment of a system. For example, a system of signatures - lending proof that the person taking the meal is related to the business, and the amount of meals taken, etc. The issuance of meal cards, meal tickets, etc. may involve the employee's personal income tax. It is important to consult with the local tax office before choosing a way to benefit employee meals.
It should be noted that during the holiday season, the enterprise through the canteen issued to the employees of the rice, cooking oil and other benefits, should be included in the employee's gross salary for the month, (after deducting social security costs) if more than 3,500 yuan personal tax threshold, it should be withheld and paid on behalf of the individual income tax; these rice, cooking oil and other benefits for the need for PR to give to the enterprise's outsiders, you can not be dealt with as a welfare expense, but should be The company's business is to provide the best possible service to its customers.