Can the work related injury insurance paid by the enterprise for its employees be deducted before ta

Determine the principles for which pre-tax deductions are allowed.

1. The principle of accrual accounting. The accrual principle states that the taxpayer should recognize the deduction when the expense is incurred rather than when it is actually paid. Second, the principle of proportioning.

The principle of matching means that the expenses incurred by taxpayers should be declared and deducted in the current period when the expenses should be matched or distributed. The deductible expenses that should be declared by taxpayers in a certain tax year shall not be declared in advance or late.

Scope of pre-tax deductions.

Consumption tax, business tax, resource tax, customs duties, urban maintenance and construction fees, education surcharges and other product sales taxes and surcharges paid by taxpayers, as well as real estate tax, vehicle and vessel use tax, land use tax, stamp duty, etc., can be deducted. Losses refer to the non-operating expenses, operating losses, and investment losses of taxpayers in the process of production and operation

Cost. Taxes and Losses.

Expenses. Items to be deducted before tax after approval by the tax authorities.

The property losses that taxpayers apply to the tax authorities for pre-tax deduction in a tax year include: bad debt losses, inventory losses, fixed asset losses, and foreign investment losses recognized by taxpayers in the current year. The taxpayer has a net loss of inventory loss, damage and scrapping of fixed assets and current assets incurred in the course of production and operation in a tax year.

Matters related to the loss of property of the enterprise.

Investment in domestic equipment for technological transformation is credited with corporate income tax.

Review items for loss recognition and pre-tax recovery.

Items that are not allowed to be deducted before tax.

Capital expenditures.

Intangible assets transfer, development expenditure.

Fines and loss of confiscated property.

Fines, fines, and late fees for violating laws and administrative regulations.

There is compensation for the loss caused by natural disasters or accidents.

Donations that exceed the allowable deduction standards stipulated by the state.

Various sponsorship expenditures.

Other expenses not related to the acquisition of income.

Repair costs for staff dormitories.

Accrued and undeducted items for the current year.

Any form of reserve other than the reserve that can be withdrawn as prescribed by the regulations.

Reserves drawn by exchanges and brokers.

Advertising expenses for grain liquor.

Unapproved on- and out-of-the-money** and charges.

The loss of housing for employees by the enterprise.

Depreciation and maintenance costs for housing that has been ** or rented.

The part of the housing provident fund that exceeds the taxable wage standard.

Illegal expenditures such as bribery.

Fees that exceed or exceed the statutory range and standard portion.

Investments in the purchase of equipment are financed by financial allocations.

**Handling fee refunded to the customer by the sales department.

Advertising agency organization fees, publicity fees.

Legal analysis: work-related injury compensation can be deducted before tax, and the expenses related to production and operation of the enterprise can be deducted before tax, and it is stipulated that the work-related injury insurance premiums paid by the enterprise for employees, the liquidated damages (including bank penalty interest), fines and litigation fees paid by the enterprise in accordance with the provisions of the economic contract can be deducted before tax.

Legal basis: Law of the People's Republic of China on the Administration of Tax Collection

Article 1 This Law is enacted for the purpose of strengthening the administration of tax collection, standardizing the collection and payment of taxes, safeguarding state tax revenues, protecting the legitimate rights and interests of taxpayers, and promoting economic and social development.

Article 2 This Law shall apply to the collection and administration of all kinds of taxes levied by the taxation authorities in accordance with the law.

Article 3 The levy and suspension of taxation, as well as tax reduction, exemption, tax refund and tax compensation, shall be carried out in accordance with the provisions of the law; Where the law authorizes ***, it shall be implemented in accordance with the provisions of the administrative regulations formulated by ***.

No organ, unit, or individual may violate the provisions of laws and administrative rules and regulations by making decisions on tax levy or suspension, tax reduction, tax exemption, tax refund, tax compensation, or other decisions that contradict tax laws and administrative regulations.

Article 4 Units and individuals that are liable to pay taxes as stipulated by laws and administrative regulations are taxpayers.

Units and individuals that are required by laws and administrative regulations to withhold and remit taxes or collect and remit taxes are called withholding agents. Taxpayers and withholding agents must pay taxes, withhold and remit taxes, collect and remit taxes in accordance with the provisions of laws and administrative regulations.

Article 36 of the Detailed Rules for the Implementation of the Enterprise Income Tax Law clearly stipulates:

Article 36 Except for the personal safety insurance premiums paid by enterprises for workers of special types of work in accordance with the relevant state regulations and the commercial insurance premiums for their employees who can be deducted according to the regulations of the competent financial and taxation departments, the commercial insurance premiums paid by enterprises for investors or employees may be deducted if they are not destroyed.

Therefore, the accident insurance you buy for employees is not allowed to be deducted before tax.

Extended reading: [Insurance] How to buy, which one is better, teach you to avoid these insurance"pits"

In accordance with the provisions of the "Regulations on Work-related Injury Insurance for Employees of Urban Enterprises in Dalian", the wages paid to employees and their families due to work-related injuries, disability and death are allowed to be deducted before tax and service. and the Notice on Several Issues Concerning Enterprise Income Tax (2021) (Sui Di Shui Fa [2021] No. 220) stipulates that the balance of work-related accidents related to production and operation of taxpayers after deducting the compensation of the responsible person and insurance compensation is medical expenses"Welfare payments payable"Medium expenses shall not be deducted before tax; The compensation paid by the taxpayer to the service object or a third party (such as the passenger transport enterprise to the passengers carried by the passenger transport company, the injury to the pedestrians by the construction enterprise during the open-air construction, etc.) in the production and operation can be deducted before tax.

Article 9 of the Regulations for the Implementation of the Enterprise Income Tax Law of the People's Republic of China The calculation of the taxable income of an enterprise is based on the principle of the residual filial piety system of rights and responsibilities, and belongs to the income and expenses of the current period, regardless of whether the payment is received or paid, and is regarded as the income and expenses of the current period; Income and expenses that do not belong to the current period, even if the money has been received and paid in the current period, are not included as income and expenses for the current period. Except as otherwise provided by these Regulations and the competent financial and taxation authorities.

Since it is not clear whether the medical expenses and compensation for work-related injuries of employees can be deducted before tax, the tax authorities in different places have different handling in practice. In practice, it has also caused a lot of controversy.

Due to an accident during the operation of the company's production machinery, two employees were injured Shikai. Recently, two employees recovered and were discharged from the hospital. How to deal with the medical expenses and compensation of injured employees? ”

According to the Detailed Rules for the Implementation of the Provisional Regulations of the People's Republic of China on Enterprise Income Tax and the Measures for Pre-tax Deduction of Enterprise Income Tax, the expenses related to production and operation of enterprises can be deducted before tax, and it is stipulated that the work-related injury insurance premiums paid by enterprises for employees, liquidated damages, fines and litigation fees paid by enterprises in accordance with the provisions of economic contracts can be deducted before tax. In addition, the Regulations on Work-related Injury Insurance, which came into force on January 1, 2004, give detailed explanations on the identification of work-related injuries and the treatment of work-related injury insurance, and the compensation standards for work-related injury insurance are also clear in various localities. However, the above provisions and relevant income tax laws and regulations do not clarify whether the medical expenses and compensation for work-related injuries of employees can be deducted before tax, and the tax authorities in different places deal with them differently in practice.

For example, Article 4 of the Circular of the Dalian Municipal Local Taxation Bureau on Printing and Distributing Several Issues Concerning Enterprise Income Tax stipulates that in accordance with the provisions of the Provisions on Work-related Injury Insurance for Employees of Urban Enterprises in Dalian, the wages, various subsidies and subsidies paid by enterprises to employees and their families due to work-related injuries, disability and death are allowed to be deducted before tax.

However, the taxation departments in some places believe that the statutory personal accident safety insurance paid by taxpayers for special types of workers in accordance with national regulations can be deducted before tax, but the compensation for work-related injuries is not allowed to be deducted before tax.

In view of the above provisions, taxpayers are reminded that:1After the occurrence of a work-related accident, the relevant accident appraisal certificate should be obtained in a timely manner to prove the authenticity of the accident, and the key to determining the work-related injury is whether the injury was caused by work.

2.Formulate compensation measures in accordance with the relevant documents of the local government, and sign relevant compensation agreements with employees. 3.

The amount of compensation shall not exceed the compensation standard stipulated by the local **. 4.If the enterprise has participated in the insurance, the amount of compensation shall be deducted from the work-related injury compensation confirmed by the relevant departments, and the work-related injury insurance shall be paid by the work-related injury insurance for the employees.

5.The compensation incurred by the enterprise for the performance of the labor contract is an expense related to production and operation, not a welfare expense in the general sense, and should be deducted before tax.

1. If it is a domestic-funded enterprise, the payment of work-related injury compensation shall be included in the "welfare payable" account.

2. If it is a foreign-funded enterprise, the work-related injury compensation payment shall be included in the account of "management expenses and welfare". According to the "Enterprise Institute.

1. If it is a domestic-funded enterprise, the payment of work-related injury compensation shall be included in the "welfare payable" account.

2. If it is a foreign-funded enterprise, the work-related injury compensation payment shall be included in the "management expenses and welfare" account. According to the provisions of the Interim Regulations on Enterprise Income Tax and the Measures for Pre-tax Deduction of Enterprise Income Tax, the expenses related to production and operation of an enterprise can be deducted before tax, and it is clearly stipulated that the work-related injury insurance premiums paid by the enterprise for its employees, the liquidated damages (including bank penalty interest), fines and litigation fees paid by the enterprise in accordance with the provisions of the economic contract can be deducted before tax, but there is no clear provision on whether the medical expenses and compensation for work-related injuries of employees can be deducted before tax. For example, the Notice of the Guangzhou Local Taxation Bureau on Several Issues Concerning Enterprise Income Tax (20041026 Sui Di Shui Fa No. 2004 No. 220) stipulates that the balance of work-related accidents related to production and operation of taxpayers after deducting the compensation of the responsible person and insurance compensation shall be incurred in the "welfare expenses payable" if they belong to medical expenses, and shall not be deducted before tax; The compensation paid by the taxpayer to the service object or a third party (such as the passenger transport enterprise to the passengers carried by the passenger transport company, the injury to the passer-by by the construction enterprise during the open-air construction, etc.) can be deducted before tax; If it is not related to production and operation, it shall not be deducted before tax.

According to Article 14 of the Regulations on Work-related Injury Insurance, an employee shall be deemed to have suffered a work-related injury if he or she falls under any of the following circumstances:

1) Being injured in an accident during working hours and in the workplace due to work-related reasons;

2) Being injured in an accident while engaging in work-related preparatory or finishing work in the workplace before or after working hours;

3) Injured by violence or other accidents during working hours and in the workplace due to the performance of work duties;

4) Suffering from occupational diseases;

5) Injured or unaccounted for in an accident due to work reasons or between the rounds and hail during the period of going out for work;

6) Being injured in a motor vehicle accident while commuting to or from work;

7) Other circumstances that laws and administrative regulations provide shall be recognized as work-related injuries. Therefore, we believe that the medical expenses for work-related injuries incurred by an enterprise in the performance of the labor contract, i.e., compensation, are expenses related to production and operation, not welfare expenses in the general sense, and can be deducted before tax.

The part of the employee welfare expenses incurred by the enterprise that does not exceed 14% of the total wages and salaries is allowed to be deducted. If the welfare subsidy included in the wage and salary system of the enterprise and fixed together with the wages and salaries of the enterprise complies with the relevant regulations of the State Administration of Taxation, it can be used as the wage and salary expenses incurred by the enterprise and deducted before tax according to the regulations. Welfare subsidies that cannot meet the above conditions at the same time shall be calculated according to the provisions of the pre-tax deduction.

The employee welfare expenses issued or guessed by the enterprise should be set up separately for accurate accounting. 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 the correction is not made within the time limit, the tax authorities may verify the employee welfare expenses incurred by the enterprise. Segment oak.

Summary. Hello, Legal Analysis: Workers' Compensation Corporate Income Tax Pre-tax Deduction:

In the event of an accident, the work-related injury compensation paid by the enterprise in accordance with the standards prescribed by the state can be deducted before the enterprise income tax. The enterprise shall provide the supporting materials of the relevant departments, such as the relevant supporting materials of the labor security, insurance, court and other departments, as well as the proof of payment of compensation, the signature certificate of the employee's family after receiving the compensation, etc., and go through the pre-tax deduction procedures.

Hello, legal analysis: pre-tax deduction of enterprise income tax for work-related injury compensation: The work-related injury compensation paid by the enterprise in accordance with the standards stipulated by the state can be deducted before the enterprise income tax due to an accident.

Enterprises should provide supporting materials from relevant departments, such as evidence of failure by labor security, insurance, court and other departments, as well as proof of payment of compensation, signature certificate of the employee's family after receiving the compensation, and other materials to go through the pre-tax deduction procedures.

Legal basis: Article 2 of the Individual Income Tax Law of the People's Republic of China shall pay individual income tax on the following personal income: (1) income from wages and salaries; (2) the income from remuneration for such stupid 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 Xun's property; (9) Incidental Senchang accompaniment.

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.

We didn't buy work-related injury insurance, so we went directly to the company for compensation.

We are businesses.

If the compensation is given to an individual, can it be deducted before tax?

Workers' compensation payments that must be paid in accordance with the standards stipulated by the state can be deducted before corporate income tax.

It can be deducted before tax.

Do you have any relevant documents?

Nope.