Tax Allowance For Business Travel And Meals On Business Trip

The expenses for reimbursement of the pportation fees and lodging fees on the way of business trip of enterprises, which are normally reimbursed in the reimbursement work of an enterprise, can be accounted for. After the camp has been changed to increase, the legal bills (which cross the bridge tolls) can also be deducted from the legal bills that obtain the special invoices or allow the entry tax.

Does the business need reimbursement for the travel allowance paid by the business traveler in the form of additional cash in addition to the normal reimbursement expenses? Does this part of the allowance allow income tax deduction? Should the business personnel obtain the subsidy, should it be included?

Income is calculated on the basis of personal income tax?

Travel allowance is different from travel expenses.

Travel expenses are the real expenses of business personnel on business trip. It is necessary to obtain the compliance bills, which are processed by the company when they are reimbursed, and the travel subsidy is a kind of subsidy to the business travelers. This hard work can be invisible, or it can be a breakthrough in the amount of travel expenses stipulated by the business personnel in order to improve the comfort degree of the travel, and improve the tangible things of pportation and accommodation.

In order to encourage employees, the company carries out certain standard subsidies.

For example, the A company stipulates: the business personnel travel to the designated area, the daily traffic expense reimbursement standard is 100 yuan, the accommodation expense is 200 yuan, the above two kind of expense is reimbursed by the ticket, exceeds the conceit, is lower than the standard according to the actual amount.

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At the same time, business travel allowance is 50 yuan.

According to this regulation, when a business personnel reimbursement, the fare is 80, the accommodation fee is 200, then it can get reimbursement cost of 330 yuan (=80+200+50); B, when the business personnel reimburse, the fare is 50, the accommodation fee is 300, then it can get reimbursement cost 300 yuan (=50+200+50), when the business personnel reimburse, the fare is 140 yuan, the accommodation 230 yuan, then the reimbursement cost that it can obtain is 350 yuan (=100+200+50).

It can be seen that the above 50 yuan travel subsidy, regardless of the invoices taken, will be reimbursed by the enterprise, and the invoice must be obtained for ticket and accommodation fees, and the reimbursement should be made according to the enterprise travel expense reimbursement system.

The notice issued by the State Administration of Taxation on the issuance of regulations on the collection of personal income tax stipulates that: ([1994]089)

(two) the following does not belong to subsidies or allowances of wages or salaries, or does not belong to the income of taxpayers' salaries or salaries, and does not levy taxes:

1. only child subsidy;

2. the implementation of the civil service wage system is not included in the basic wage total allowance, allowance difference and the family members' non-staple food subsidies;

3. child care allowance;

Four

Meal allowance.

The tax and tax document "[1995]82" has made supplementary remarks to the national tax issue [1994] 089. The document No. [1994]089 issued by the State Administration of Taxation stipulates that no allowance for tax payment is provided by the financial department. Individuals who work in the urban and suburban areas, who can not work in the city or in the suburbs, do need to eat out. According to the actual number of meals eaten, they should receive the wrong meal according to the prescribed standards.

The subsidies and allowances issued by some units to employees in the name of meal subsidy shall be incorporated into the personal income tax collected from wages and salaries collected in the current month.

From the above two documents, we can see that the travel allowance in the course of the business trip of a business person, including lunch subsidy, is a non taxable item belonging to personal income tax. Beyond the scope of this regulation, and the amount that exceeds the enterprise system constraint, it should be counted as the personal income tax paid by the staff and workers in the monthly wages and salaries.

At present, there is no uniform provision for travel subsidy. When the tax authorities in various locates are executing, they generally refer to the standard of travel subsidy for civil servants designated by the local financial departments. Enterprises must never use it as a means of tax planning to enlarge the subsidy amount arbitrarily.

According to the eighth provision of the enterprise income tax law of the People's Republic of China promulgated in 2007, it is stipulated that the actual expenses related to the acquisition of income, including costs, expenses, taxes, losses and other expenditures, are allowed to be deducted when calculating the taxable income.

The twenty-seventh provision of the regulations on the implementation of the new enterprise income tax law stipulates that the reasonable expenditure mentioned in the eighth section of the enterprise income tax law refers to the necessary and normal expenditure that should conform to the routine of production and operation activities and should be included in the profits and losses of the current period or the cost of the assets concerned.

Business travel allowance is in line with the above provisions. Therefore, the amount of the allowance within the standard range is allowed to be deducted before tax. The part that exceeds the standard is allowed to deduct the tax after deducting the personal income tax from the personal wages and salaries.

Is it a small problem that the cost of meals on a business trip should be listed as the cost of the differential travel expenses or whether it should be charged?

The inclusion of travel expenses can be deducted from full tax deduction and included in entertainment expenses, and only 60% of the value of the face value can be deducted before tax deduction. The total amount of pre tax deduction is also restricted by the overall pre tax deduction standard of business entertainment expenses.

The difference between the cost of meals on a business trip is the expense.

If it is a business traveler's own consumption according to regulations, that is, the travel expenses and the meals paid by the travelling personnel exceed the standard of the travel expenses of the enterprises. If the reimbursement is made, the excess part should be included in the personal wages and salaries, and the individual tax should be charged. If not, it should be included in the travel expenses; if it is the poor party who entertains the customers to consume, that is the business entertainment fee.