What penalties are deductible before tax? Can fines be deducted before tax

According to the following documents, fines, penalties and late fees paid in violation of laws and administrative regulations are not allowed to be deducted, but liquidated damages (including bank penalty interest), fines and litigation fees paid in accordance with the provisions of the economic contract can be deducted. This requires the financial personnel of the enterprise to judge the business that occurs. Fines cannot be treated uniformly.

It depends on the nature. Article 6 of Guo Shui Fa [2000] No. 84 stipulates that, in addition to the provisions of Article 7 of the Regulations, the following expenses shall not be deducted when calculating the taxable income:

1) Bribery and other illegal expenditures;

2) Fines, fines, and late fees paid for violations of laws and administrative regulations;

3) Reserve for decline in value of inventory, reserve for decline in value of short-term investment, provision for impairment of long-term investment, and risk reserve (including investment risk reserve**).

and any form of reserve other than the reserves that can be withdrawn as provided for by national tax regulations;

4) The tax regulations have a specific scope and standard of deduction (proportion or amount), and the actual expenses incurred exceed or exceed the statutory scope and standard.

Article 56 Liquidated damages (including bank penalty interest), fines and litigation fees paid by taxpayers in accordance with the provisions of the economic contract may be deducted.

Article 2 of Guo Shui Fa [1997] No. 191 stipulates that on the handling of overdue repayment plus penalty interest.

If a taxpayer repays a bank loan within the time limit, the penalty interest charged by the bank in accordance with the regulations is not an administrative penalty and is allowed to be deducted before tax.

These penalties are deductible before taxes! If you don't know, learn it quickly!

Legal analysis: whether fines can be deducted before tax can be understood as follows: all fines, penalties and late fees paid in violation of laws and administrative regulations are not allowed to be deducted, but liquidated damages (including bank penalty interest), fines and litigation fees paid in accordance with the provisions of the economic contract can be deducted.

This requires a specific judgment on the business that occurs, and the legal basis for fines that cannot be considered to be non-deductible before tax: Article 2 of the Individual Income Tax Law of the People's Republic of China 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 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.

The "Enterprise Income Tax Law of the People's Republic of China" clearly stipulates that fines, fines and losses of confiscated property shall not be deducted when calculating the taxable income.

Legal basis] Article 10 of the Enterprise Income Tax Law of the People's Republic of China When calculating the taxable income, the following expenses shall not be deducted: (1) dividends, bonuses and other equity investment income paid to investors; (2) Enterprise income tax; (3) Late tax fees; (4) Fines, fines, and losses of confiscated property; (5) Donation expenditures other than those provided for in Article 9 of this Law; (6) Sponsorship expenditures; (7) Unapproved reserve expenditures; (8) Other expenditures that are not related to the income obtained.

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

Administrative fines shall not be deducted before tax.

In fact, many people believe that fines are a means of punitive measures for corporate violations, so enterprises cannot make pre-tax deductions. However, in practice, this issue cannot be generalized, but should be dealt with in an attitude of specific analysis of specific problems, because the nature of punishment is different, and the measures imposed are also different. In general, there are two types of punishments:

1. Administrative fines: such as penalties imposed by tax authorities, industrial and commercial authorities, etc.;

2. Operating fines: such as bank late fees, liquidated damages, etc.

Although the expenses in these two cases belong to the category of fines, the nature of the two is different, and the situation of pre-tax deduction by the enterprise is also different.

Administrative fines.

Here you can get straight to the point: administrative penalties must not be deducted before tax. So what are these kinds of penalties? The Enterprise Income Tax Law of the People's Republic of China stipulates that the following expenses shall not be deducted before tax:

1 Dividends paid to investors;

2. Equity investment income such as dividends;

3. Corporate income tax;

4 Tax Late Fees;

5 Fines, fines and loss of confiscated property;

6 Sponsorship expenditures;

7 Unapproved reserve expenditures;

8 Other expenses not related to the acquisition of income.

The penalty is usually deducted before tax, but if it is a tax penalty during the final settlement, it is not allowed to be deducted before the income tax, and it needs to be increased. Adjusting the balance sheet does not adjust the account.

Penalties are non-operating expenses and are deductible after tax.

As long as the money is not punished by the administrative organ, it can be deducted before tax. According to the regulations, all fines, fines and late fees paid to the state in violation of laws and administrative regulations are not allowed to be deducted beforehand, but the liquidated damages (including bank penalty interest), fines and litigation fees paid in accordance with the provisions of the economic contract can be deducted. This requires the financial personnel of the enterprise to judge the business that occurs.

Fines cannot be treated uniformly. It depends on the nature.

The pre-tax deduction criteria for penalty expenses are as follows:

1. Enterprise income tax shall not be deducted;

2. Late tax fees shall not be deducted; Sponsorship expenses are not deductible;

3. The deduction standard for employee welfare expenses is 14% of the amount of wages and salaries;

4. 8% of the deduction standard for employee education expenses;

5. The commercial insurance premiums paid by enterprises for investors or employees shall not be deducted.

Legal basisArticle 10 of the Enterprise Income Tax Law of the People's Republic of China.

In calculating taxable income, the following expenses are not deductible:

1) Dividends, bonuses and other equity investment income paid to investors;

(2) Enterprise income tax;

(3) Late tax fees;

(4) Fines, fines, and losses of confiscated property;

5) Donation expenditures other than those provided for in Article 9 of this Law;

6) Sponsorship expenditures;

(7) Unapproved reserve expenditures;

8) Other expenses unrelated to the acquisition of income.

Fines can be deducted before tax, mainly in the following categories:

1. Fines imposed by law: such fines are generally imposed by the national, provincial and municipal governments, such as fines imposed under the criminal law, or fines collected. This type of penalty can be deducted before tax during the tax return process;

2. Fines agreed in the contract: Most of these fines are agreed by both parties to the commercial contract, which are equivalent to the price of goods or services paid, and must be included in the pre-tax expenditure and deducted before tax;

Expenses that cannot be deducted before tax are:

1. Dividends paid to investors and equity investment income of Honghui Ruli;

2. Enterprise income tax;

3. Late tax fee;

4. Fines, fines and loss of confiscated property;

5. Public welfare donation expenses other than 12% of the total annual profit (non-public welfare donations are also not allowed to be deducted);

6. Various non-advertising sponsorship expenditures unrelated to production and business activities;

7 Unapproved reserve expenditures;

8 Other expenses not related to the acquisition of income.

In summary, management fees paid between enterprises, rents and royalties paid between business establishments within enterprises, and interest paid between business establishments within non-bank enterprises are not deductible.

Legal basis

Article 10 of the Enterprise Income Tax Law of the People's Republic of China.

In calculating taxable income, the following expenses are not deductible:

1) Dividends, bonuses and other equity investment income paid to investors;

(2) Enterprise income tax;

(3) Late tax fees;

4) Fines, fines and losses of property confiscated from rent;

(5) Donation expenditures other than those provided for in Article 9 of this Law;

6) Sponsorship expenditures;

(7) Unapproved reserve expenditures;

8) Other expenses unrelated to the acquisition of income.