Article 4 of the new enterprise income tax law stipulates that employees' welfare expenses incurred by an enterprise shall be deducted if they do not exceed 14% of the total wages and salaries.

☆ Notice of State Taxation Administration of The People's Republic of China on Deduction of Wages, Salaries and Employee Welfare Expenses (Guo Shui Han [29] No.3) stipulates that

III. Deduction of Employee Welfare Expenses

The employee welfare expenses stipulated in Article 4 of the Implementation Regulations include the following contents:

(1) Enterprises that have not yet implemented social functions separately shall have welfare departments. Including the staff canteen, staff bathroom, barber shop, medical clinic, nursery, sanatorium and other collective welfare departments' equipment, facilities and maintenance costs, as well as the wages and salaries of welfare department staff, social insurance premiums, housing provident fund, labor costs, etc.

(2) Various subsidies and non-monetary benefits for employees' health care, living, housing, transportation, etc., including medical expenses paid by enterprises to employees on business trips, medical expenses for employees in enterprises that have not implemented medical co-ordination, medical subsidies for employees to support their immediate family members, heating subsidies, heatstroke prevention and cooling expenses for employees, subsidies for employees' difficulties, relief funds, subsidies for employees' canteens, and transportation subsidies for employees, etc.

(3) other employee welfare expenses incurred in accordance with other regulations, including funeral subsidies, pension expenses, family expenses, family leave travel expenses, etc.

(Accounting Standards for Business Enterprises No.9-Employees' Remuneration stipulates that employees' welfare expenses are mainly used for employees' medical expenses, salaries of medical staff, medical expenses, travel expenses for employees who are injured on business, subsidies for employees' living difficulties, salaries of employees in bathrooms, barbershops, kindergartens and nurseries, and other welfare expenditures according to state regulations. )

IV. Accounting for employee welfare expenses

Employees' welfare expenses incurred by enterprises should be accounted for accurately by separate account books. If there is no separate account book for accurate accounting, the tax authorities shall order the enterprise to make corrections within the prescribed time limit. If no correction is made within the time limit, the tax authorities may make a reasonable verification of the employee welfare expenses incurred by the enterprise.

☆ The Notice of the Ministry of Finance on Strengthening the Financial Management of Employees' Welfare Expenses (Caiqi [29] No.242) stipulates that

1. The employees' welfare expenses of enterprises refer to the welfare expenses provided by enterprises for employees except wages, bonuses, allowances, subsidies included in the total wages management, employees' education funds, social insurance premiums, supplementary old-age insurance premiums (annuities), supplementary medical insurance premiums and housing accumulation funds. Including the following cash subsidies and non-monetary collective benefits paid to or for employees:

(1) Cash subsidies and non-monetary benefits paid or paid for employees' health care and life, including medical expenses for employees on business trips, medical expenses for employees in enterprises that have not yet implemented medical co-ordination, medical subsidies for employees' immediate family members, medical expenses for employees' recuperation, financial subsidies for running their own canteens or expenses for uniformly supplying lunch for employees without running canteens, subsidies for heating expenses that meet relevant financial regulations of the state, and heatstroke prevention.

(2) the equipment, facilities and personnel expenses incurred by the internal collective welfare department of the enterprise that has not been separated, including the depreciation and maintenance expenses of the equipment and facilities of the collective welfare department such as staff canteen, staff bathroom, barber shop, medical clinic, nursery, sanatorium and dormitory, as well as the wages and salaries of the staff of the collective welfare department, social insurance premium, housing accumulation fund and labor expenses.

(3) Subsidies for employees in difficulty, or fund expenditures established and managed by enterprises as a whole to help and relieve employees in difficulty.

(4) the overall expenses of retirees, including the medical expenses of retirees and other overall expenses of retirees. The expenses of retirees involved in enterprise restructuring shall be handled in accordance with the Notice of the Ministry of Finance on Financial Management of Employee Resettlement Expenses in Enterprise Restructuring (Caiqi [29] No.117). Unless otherwise stipulated by the state, such provisions shall prevail.

(5) Other employee welfare expenses incurred in accordance with regulations, including funeral subsidies, pension expenses, employees' relocation expenses, one-child expenses, family leave travel expenses, and other expenses that meet the definition of enterprise employee welfare expenses but are not included in the items in this notice.

2. If the transportation, housing and communication benefits provided by enterprises for employees have been monetized, the monthly housing subsidies, transportation subsidies, vehicle reform subsidies and communication subsidies paid according to the standard shall be included in the total wages of employees and no longer included in the management of employee welfare funds; If the monetization reform has not been implemented, the related expenses incurred by the enterprise shall be managed as employee welfare expenses, but according to the unified provisions of the state on the reform policy of enterprise housing system, it is not allowed to purchase and build housing for employees.

The holiday subsidies granted by enterprises to employees, and the monthly subsidies for lunch without unified meals should be included in the management of total wages.

3. Employee welfare is an auxiliary form of enterprise's labor compensation for employees. Enterprises should reasonably control the proportion of employee welfare fees to the total income of employees with reference to the general historical level. According to the provisions of Article 46 of the General Principles of Enterprise Finance, the relevant expenses that should be borne by individuals shall not be used by enterprises as employee welfare expenses.

fourth, enterprises should gradually promote the separation reform of internal collective welfare departments and solve the problem of employee welfare treatment through market-oriented methods. At the same time, combined with the reform of enterprise salary system, a complete labor cost management system will be gradually established, and employee welfare will be included in the total salary management of employees.

for the person-in-charge of the enterprise who implements the salary system reform such as the annual salary system, the enterprise shall incorporate all kinds of welfare monetary subsidies that meet the requirements of the state into the overall management of the salary system, and the welfare monetary subsidies issued or paid shall be paid out of his personal salary.

5. Generally, the welfare of employees in enterprises should be mainly in the form of money. Enterprises should strictly control the products and services of their own enterprises as employees' welfare. Enterprises such as telecommunications, electric power, transportation, heating, water supply and gas funded by the state, which regard their products and services as employees' welfare, shall implement fair trade according to the principle of commercialization, and shall not directly provide employees and their relatives with free or low-cost use.

VI. The following principles and requirements shall be followed in the financial management of enterprise employee welfare funds:

(1) The system is sound. An enterprise shall formulate a management system for employee welfare expenses according to law, and with the approval of the shareholders' meeting or the board of directors, define the items, standards, examination and approval procedures and audit supervision of employee welfare expenses.

(2) The standard is reasonable. If the state has clear provisions on the welfare expenses of enterprise employees, the enterprise shall strictly implement them. If there is no clear stipulation by the state, the enterprise shall formulate reasonable standards according to the employee welfare items with reference to the local price level, employee income, enterprise financial status and other requirements.

(3) management science. Enterprises should make overall plans for employee welfare expenses and implement budget control and management. The employee welfare budget shall be included in the financial budget of the enterprise after deliberation by the employee congress, approved and implemented according to the regulations, and relevant information shall be disclosed to the employees within the enterprise.

(4) accounting standards. The employee welfare expenses incurred by the enterprise shall be accounted for in detail according to the regulations, accurately reflecting the expenditure items and amounts.

☆ The Notice of State Taxation Administration of The People's Republic of China on Determining the Scope of Living Allowance (Guo Shui Fa [998] No.155) stipulates that

According to recent reports from some regions < Regulations for the Implementation of the Individual Income Tax Law of the People's Republic of China >: Article 14 "Living allowance paid to individuals from welfare funds or trade union funds" is difficult to be specifically defined in actual implementation due to the lack of clear scope, and the scale of mastery varies from place to place, so it must be uniformly and clearly stipulated to facilitate implementation. Through research, it is now clear as follows:

1. The above-mentioned living allowance refers to the temporary living hardship allowance paid by the employer to the taxpayer or his family from the retained welfare funds or trade union funds due to certain specific events or reasons.

II. The following incomes are not included in the scope of tax-free welfare funds and should be incorporated into the taxpayer's salary and salary income for personal income tax:

(1) Various subsidies paid to individuals from the welfare funds accrued beyond the proportion or base set by the state;

(2) subsidies paid to employees of the unit from welfare funds and trade union funds;

(3) the expenses that the unit buys cars, houses, computers and other items for individuals that are not temporary subsidies for living difficulties.

(Ministry of Human Resources and Social Security's Letter on Issues Related to the Management of Total Wages of Enterprises (No.51 [21] of the People's Social Welfare Department) stipulates that

in the management of total wages of state-owned enterprises, housing subsidies and payments to employees should be paid monthly according to the provisions of the Notice on Strengthening the Financial Management of Employees' Welfare Fees in Enterprises (No.242 [29] of Caiqi). Enterprises that implement the method of linking work efficiency shall be listed separately outside total wage base, which is directly linked to the economic benefits of enterprises, and shall not be used as the base for calculating new benefits wages. )

(Notice on Issues Concerning the Connection between the Old and New Financial Systems of Enterprises (No.34 [28] of Caiqi) stipulates that if there is a surplus in the welfare funds payable before the implementation of the General Principles of Enterprise Finance, the supplementary endowment insurance that meets the requirements shall be charged from the welfare funds payable first.

The application guide of Accounting Standards for Business Enterprises No.38-First Implementation of Accounting Standards for Business Enterprises stipulates that the balance of employees' welfare expenses of an enterprise on the first implementation date shall be fully transferred to employees' salaries payable (employee benefits). In the first accounting period after the first implementation date, according to the provisions of Accounting Standards for Business Enterprises No.9-Employee Compensation, the employee compensation payable (employee benefits) is confirmed according to the actual situation of the enterprise and the employee welfare plan, and the management fee is adjusted by the difference between the amount and the original employee compensation payable (employee benefits).

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According to the General Principles of Enterprise Finance, Article 46 An enterprise shall not bear the following personal expenses:

(1) Entertainment, fitness, tourism, entertainment, shopping, gifts and other expenses.

(2) Expenditure on purchasing commercial insurance, securities, stock rights, collectibles, etc.

(3) expenses such as fines and compensation caused by personal actions.

(4) expenses such as purchasing houses and paying property management fees.

(5) Other expenses that should be borne by individuals.

The Measures for the Implementation of Equity and Dividend Incentives for Enterprises in Zhongguancun National Independent Innovation Demonstration Zone (Caiqi [21] No.8) stipulates that

Article 2 These Measures are applicable to the following enterprises in Zhongguancun National Independent Innovation Demonstration Zone:

(1) State-owned and state-controlled institutions-transformed enterprises and high-tech enterprises.

(2) Institutions of higher learning and research institutes in the demonstration area are all enterprises whose scientific and technological achievements are priced as shares.

(3) other scientific and technological innovation enterprises.

article 3 equity incentive means that an enterprise takes the equity of the enterprise as the target and adopts the following methods to motivate the incentive object:

(1) equity incentive means that the enterprise grants a certain share of equity or a certain number of shares to the incentive object free of charge.

(2) Equity sale, that is, the enterprise sells the equity of the enterprise (including shares, the same below) to the incentive object by agreement at a price not lower than the appraised value of the equity.

(3) stock options, that is, the enterprise grants the incentive object the right to buy a certain number of shares of the enterprise at a predetermined exercise price in the future.

Dividend incentive refers to the behavior that enterprises take the net income from industrialization, external transfer, cooperative transformation and pricing of scientific and technological achievements as the target, and adopt the way of project income sharing to motivate the incentive objects.

Article 4 The incentive targets shall be important technical personnel and enterprise management personnel, including the following personnel:

(1) Technical personnel who have made outstanding contributions to the R&D and industrialization of scientific and technological achievements in enterprises, including the main finishers of scientific and technological achievements in key positions in enterprises, the persons in charge of major development projects, the main technical personnel who have made major innovations or improvements in leading products or core technologies and technological processes, and the main technical personnel who have researched, developed and transferred scientific and technological achievements to enterprises in universities and research institutes.

(2) management personnel who have made outstanding contributions to the development of the enterprise include senior management personnel who preside over the overall production and operation of the enterprise, and middle and senior management personnel who are responsible for the production and operation of the main products (services) of the enterprise, accounting for more than 5% of the main business income (or main business profit).

an enterprise may not implement equity or dividend incentives for all employees.

supervisors, independent directors and management personnel of the controlling shareholder unit of the enterprise shall not participate in the equity or dividend incentive of the enterprise.

Article 25 The expenses required by an enterprise to implement dividend incentive shall be included in the total wages, but not included in total wage base, and shall not be used as the basis for the provision of education funds for employees, trade union funds, social insurance premiums, supplementary pension and supplementary medical insurance premiums, housing accumulation fund, etc.

☆ "Supplementary Notice of State Taxation Administration of The People's Republic of China on Doing a Good Job in the Final Settlement and Payment of Enterprise Income Tax in 27" (Guo Shui Han [28] No.264) stipulates that

the welfare expenses of enterprise employees in 27 are still deducted according to 14% of the total taxable wages, and the unused part should be accumulated into the balance of employee welfare expenses. The employee welfare expenses incurred in 28 and the following years shall be deducted from the balance of employee welfare expenses accrued in previous years but not actually used, and the insufficient part shall be deducted according to the provisions of the new enterprise income tax law. The balance of employee welfare funds accrued by the enterprise in previous years but not actually used has been deducted before tax, which belongs to the rights and interests of employees. If the use is changed, the taxable income should be adjusted and increased.

☆ The Notice of State Taxation Administration of The People's Republic of China on the Connection of Some Tax Matters of Enterprise Income Tax (Guo Shui Han [29] No.98) stipulates that

IV. The treatment of the balance of employee welfare expenses in previous years

According to the Supplementary Notice of State Taxation Administration of The People's Republic of China on Doing a Good Job in the Settlement and Payment of Enterprise Income Tax in 27 (Guo Shui Han [28] No.264), Before 28, the balance of employee welfare expenses accrued by the enterprise in accordance with the regulations but not yet used, and the employee welfare expenses incurred in 28 and subsequent years should be deducted first, and the insufficient part should be deducted according to the provisions of the new tax law; If there is still a balance, it will continue to be used in future years. The employee welfare expenses saved by the enterprise before 28 have been deducted before tax, which belongs to the rights and interests of employees. If the use is changed, the taxable income of the enterprise should be adjusted and increased.