PPE

The input tax of labor protection articles purchased and used can be deducted

whether the labor protection expenses incurred by the enterprise can be deducted before the enterprise income tax, whether the input tax of purchasing labor protection articles can be deducted, and whether the labor protection articles distributed to employees need to be withheld for individual income tax. These aspects of the problem, has been the enterprise income tax settlement error prone place, the author’s analysis is as follows

labor insurance expenses can be deducted before tax

Article 48 of the regulations on the implementation of the enterprise income tax law stipulates that reasonable labor protection expenses incurred by enterprises are allowed to be deducted Article 2 of the notice of the State Administration of Taxation on several issues of enterprise income tax (notice of the State Administration of Taxation No. 34, 2011) stipulates that the enterprise shall, according to the nature and characteristics of its work, uniformly produce and require the employees to wear uniform work clothes, 1t can be used as a reasonable expense of the enterprise to give pre tax deduction

if the enterprise has reasonable labor protection expenses, it is allowed to deduct them before tax. 1t means that enterprises are allowed to deduct expenses before tax only when they have actually incurred expenses. 1f they have not actually incurred expenses, they can not make provision for expenses. At the same time, it must be reasonable labor protection expenditure. The so-called “reasonable” refers to the expenditure that must be provided or provided for the staff according to the work needs, which is limited to work clothes, gloves, safety protection articles, heatstroke prevention and temperature lowering products, etc. That is to say, if the labor premium paid to other personnel without labor relations or the expenses provided to other personnel without any labor relations with the enterprise are not for work needs, they shall not be deducted before tax

in practical work, we should pay attention to the following two points: first, the labor protection expenditure should be reimbursed according to the voucher. Article 15 of the regulations on the supervision and administration of labor protection articles (Order No. 1 of the State Administration of work safety) stipulates that the production and business operation units shall not replace the labor protection articles with currency or other goods2. Labor protection expenditure is not welfare treatment Article 15 of the regulations on the supervision and administration of labor protection articles also stipulates that labor protection articles refer to the personal protective equipment provided by the production and business operation units for employees to prevent or reduce accident injuries and occupational hazards in the process of labor

although the employees’ clothing issued by the enterprise for the purpose of reasonable operation and management is a reasonable expenditure, it must be proved by relevant data (such as internal management system), and must meet the following conditions: 1. 1t must be in line with the nature and characteristics of the enterprise’s work. The expenses related to clothes that are not needed at work can not be deducted. For example, the expenses of suits, ties, etc. issued by a financial enterprise to employees for work can be deducted. 1f mountain climbing suits are issued, they cannot be directly deducted before tax2. To meet the requirements of unified production. The unified standard should be the same type of personnel standards, uniform clothing form, and personalized clothing does not meet the above requirements. 3. Employees are required to wear uniform at work. There is no need for employees to wear uniform when they work. They are only issued for the purpose of improving welfare benefits, which can not be directly deducted before tax

therefore, the labor protection articles issued to the employees are a preventive auxiliary measure to protect the safety and health of the workers, not the Living welfare treatment. The expenses with the nature of general welfare, which are not due to the work needs and the national regulations, should be defined as the welfare expenses, and should be declared and deducted according to the relevant standards< According to Article 10 of the Provisional Regulations on value added tax, the input tax on goods purchased or taxable services used for non VAT taxable items, VAT exempt items, collective welfare or personal consumption, as well as consumer goods for taxpayers' own use stipulated by the financial and tax authorities of the State Council, can be deducted, 1t shall not be deducted from the output tax. 1f the labor protection expenses do not fall within the scope of the above-mentioned non deductible input tax, the input tax of the purchased labor protection articles can be deducted from the output tax as long as the legal VAT deduction certificate is obtained it should be noted that in terms of enterprise income tax, the recognition of work clothes as a reasonable expenditure does not mean that the VAT input tax can be deducted, and the standards of the two taxes are different. However, referring to the provisions of enterprise income tax, according to the nature and characteristics of their work, the cost of work clothes produced by enterprises and required employees to wear uniform clothes at work does not belong to personal consumption. Therefore, the input tax can be deducted from the output tax Article 10 of the notice of the State Administration of Taxation on Revising the provisions on the use of special VAT invoices (GSF [2006] No. 156) stipulates that general taxpayers of commercial enterprises shall not issue special invoices for tobacco, wine, food, clothing, shoes and hats (excluding the special part for labor protection), cosmetics and other consumer goods. Generally speaking, for the labor protection articles purchased and used according to the specified purposes, special VAT invoices can be issued to declare and deduct the VAT input tax(From the 1nternet)

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