Is there a personal income tax on transportation subsidies?

The transportation subsidy is subject to personal income tax.

Because the subsidy belongs to the income of wages and salaries, according to the regulations, the wages, salaries, bonuses, year-end salary increases, labor bonuses, allowances, subsidies and other income related to the position or employment obtained by an individual as a result of his or her position or employment. That is to say, as long as the income obtained by an individual is related to his position or employment, regardless of the capital expenditure channel of his unit or paid in cash, in kind, valuable **, etc., it is the object of taxation of wages and salaries.

Therefore, the transportation subsidy is also subject to personal income tax.

The transportation allowance is a salary. According to the notice of the Ministry of Finance on strengthening the financial management of employee welfare expenses by enterprises, if the transportation, housing and communication benefits provided by enterprises for employees have been monetized, the housing subsidies, transportation subsidies or vehicle reform subsidies and communication subsidies issued on a monthly basis according to the standards shall be included in the total wages of employees and shall no longer be included in the management of employee welfare expenses.

Please see: Housing subsidy: Housing subsidy, food subsidy, relocation fee, and laundry fee obtained by foreign individuals in the form of non-cash or reimbursement are temporarily exempted from individual income tax.

Transportation subsidy and communication subsidy: The income from official vehicle and communication subsidy obtained by individuals due to the reform of the official vehicle and communication system shall be levied according to the income item of "wages and salaries" after deducting a certain standard of official expenses. if it is paid on a monthly basis, it shall be incorporated into the income of "wages and salaries" in the current month to calculate individual income tax; If it is not paid on a monthly basis, it shall be decomposed into the month to which it belongs and combined with the income from "wages and salaries" in that month to calculate individual income tax.

Meal stickers: In addition to wages and salaries, bonuses, year-end salary increases, labor bonuses, allowances, and subsidies have also been identified as wages and salaries. Among them, year-end salary increases and labor dividends are taxed according to wages and salaries, regardless of type and income.

There are exceptions to allowances, subsidies, etc. According to the current composition of personal income in China, it is stipulated that some subsidies that are not in the nature of wages and salaries or income that does not belong to the income items of the taxpayer's own wages and salaries shall not be taxed. These items include:

1.One-child allowance.

2.Childcare subsidy.

3.Travel allowance and meal allowance (among them, meal allowance refers to the meal allowance received according to the prescribed standard according to the Ministry of Finance if an individual works in an urban or suburban area on business and cannot eat at the unit or returns, according to the actual number of missed meals.) The subsidies and allowances issued by the unit to employees in the name of meal allowance cannot be included).

The above are all personal income tax laws and related regulations, I hope it will be useful to you.

Legal analysis: transportation subsidies are subject to individual income tax. If the transportation, housing, and communication benefits provided by an enterprise to its employees have been monetized, the transportation subsidies or vehicle reform subsidies, housing subsidies, and communication subsidies issued or paid on a monthly basis according to the standards, whether they are directly issued to individuals or paid after individuals provide bills for reimbursement, are of a wage nature and shall be included in the total wages of employees and shall no longer be included in the management of employee welfare expenses.

After deducting a certain standard of official expenses, the income of individual income tax shall be levied according to the income item of "wages and salaries".

Legal basis: Notice of the State Administration of Taxation on Policy Issues Concerning Individual Income Tax Article 2 On the taxation of income from subsidies for official transportation and communications. After deducting a certain standard of official expenses, the income from the subsidy income of official vehicles and communications obtained by individuals due to the reform of the official vehicle and communication system shall be subject to individual income tax according to the income item of "Kai Daifan salary and salary".

if it is paid on a monthly basis, it shall be incorporated into the income of "wages and salaries" in the current month for individual income tax calculation; If it is not paid on a monthly basis, it shall be decomposed into the month to which it belongs and combined with the income from "wages and salaries" in that month to calculate and levy individual income tax. The deduction standard for official expenses shall be determined by the provincial-level local taxation bureau according to the investigation and calculation of the actual occurrence of the taxpayer's official business payment and communication expenses, and shall be determined after the approval of the provincial-level people, and shall be reported to the State Administration of Taxation for the record.

The transportation subsidy is subject to personal income tax.

According to Article 2 of the Notice on Strengthening the Financial Management of Employee Welfare Expenses by Enterprises, if the transportation, housing and communication benefits provided by enterprises for employees have been monetized, the housing subsidies, transportation subsidies or car reform subsidies and communication subsidies issued or paid on a monthly basis according to the standards shall be included in the total wages of employees and shall no longer be included in the management of welfare expenses for employees who are employed and worked.

Therefore, the transportation subsidy should be incorporated into the income of "wages and salaries" in the individual income tax to calculate and pay the individual income tax.

However, it should be noted that at present, if there are local policies stipulating the deduction standard of transportation subsidies, the specific needs to be determined in conjunction with local regulations.

Article 2 of the Individual Income Tax Law stipulates that the following individual income shall be subject to individual income tax:

1) Income from wages and salaries;

2) Income from remuneration for labor services;

3) Income from author's remuneration;

4) Income from royalties;

5) Business income;

6) Income from interest, dividends and bonuses;

7) Income from property lease;

8) Income from the transfer of property;

9) Incidental gains.

Resident individuals who obtain the income from items 1 to 4 of the preceding paragraph (hereinafter referred to as "comprehensive income") shall calculate individual income tax on a consolidated basis according to the tax year; For non-resident individuals who obtain the income in items 1 to 4 of the preceding paragraph, the individual income tax shall be calculated on a monthly or sub-itemized basis. Taxpayers who obtain the income from items 5 to 9 of the preceding paragraph shall calculate individual income tax separately in accordance with the provisions of this Law.

If you still have questions about this issue, it is recommended that you organize the relevant information and communicate with a professional in detail.

Difficult analysis of legal draftsThe transportation subsidy is subject to personal income tax. If the transportation, housing, and communication benefits provided by an enterprise for its employees have been monetized and reformed, the transportation subsidy or vehicle reform subsidy, housing subsidy, and communication subsidy issued or paid on a monthly basis according to the standard, whether it is directly issued to an individual or paid after the individual provides a bill for reimbursement, shall be in the nature of wages and shall be included in the total wages of employees, and shall no longer be included in the management of employee welfare expenses. Individual income tax shall be levied on the income from the subsidy income for official vehicles and communications obtained by individuals due to the reform of the official vehicle and communication system, after deducting a certain standard of official expenses, according to the income item of "wages and salaries".

Legal basisIndividual Income Tax Law of the People's Republic of China Article 2 The following personal income shall be subject to individual income tax: (1) Income from wages and salaries (2) Income from remuneration for labor services (3) Income from author's remuneration (4) Income from royalties (5) Business income (6) Income from interest, dividends and bonuses (7) Income from property leasing (8) Income from property transfer (9) Accidental income.