According to Article 40 of the Regulations for the Implementation of the Enterprise Income Tax Law (the State Council Order No.512), if the employee welfare expenses incurred by an enterprise do not exceed 14% of the total wages and salaries, they are allowed to be deducted. According to the Notice of State Taxation Administration of The People's Republic of China City, People's Republic of China (PRC) on Deduction of Wages, Salaries and Employee Welfare Expenses (No.3 [2009] of the State Administration of Taxation), it includes the following contents: subsidies and non-monetary benefits for employees in medical care, living, housing and transportation. , including medical expenses paid by enterprises to employees on business trips, medical expenses of 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, difficulties subsidies for employees, relief funds, canteen subsidies for employees, and transportation subsidies for employees.

According to the Announcement of Jiangsu Provincial Local Taxation Bureau on the Administrative Measures for Issuing Pre-tax Deduction Certificates of Enterprise Income Tax (Jiangsu Local Taxation Bureau [201]No. 13), the labor protection expenses incurred by enterprises include the purchase of work clothes, gloves, safety protection articles, heatstroke prevention and cooling articles, etc. Deduction before tax with invoice and payment voucher. Labor protection expenses should be (2) articles with labor protection nature that occur due to work needs; (three) the number can meet the needs of the work; (4) in the form of physical objects.

Therefore, a set of toiletries issued by your company to all employees should be regarded as employee welfare expenses, and the part not exceeding 14% of total wages and salaries is allowed to be deducted before enterprise income tax.

Can the labor protection fee be deducted before tax?

According to Article 54 of the Measures for Pre-tax Deduction of Enterprise Income Tax, reasonable labor protection expenses actually incurred by taxpayers can be deducted. Labor protection expenditure refers to the expenditure incurred by equipping or providing work clothes, gloves, safety protection articles and heatstroke prevention and cooling articles for employees due to work needs. There is a certain difference between labor protection expenditure and employee welfare expenditure. Labor protection expenditure refers to the provision or provision of work clothes, gloves and safety protection articles for employees due to work needs, which generally occurs in specific positions and employee welfare.

The key to judge the pre-tax deduction of labor protection fees;

(1) Labor insurance premium is a commodity, not cash.

(2) Labor protection articles are provided for work needs, not daily necessities.