Continue to week 38th issue, today’s main topic is about tourism fee. Let us talk about invoice and related bookkeeping:

1.    VAT on tourism fees:

Q: If the company is the general taxpayer, when the company purchases tourism  services, the received VAT invoice, whether the input tax can be used for offset?

A: When the company who is the general taxpayer purchases the tourism services, and also obtains a valid and effective invoice which does not belong to the project can not be deducted, the input tax can be deducted.

For example:

1)The company commissioned the tourism company to organize the meeting which related to the company’s production and operation - can be deducted

2)The company provided the welfare, such as traveling to the employees - can not be deducted

3)The company, for the business purposes, provides the customers the traveling with the nature of hospitality - can not be deducted

2.     Corporate income tax on tourism fees:

1) Q: Staffs’ welfare travel expenses, whether can be deductible before the income tax?

    A: Staffs’ welfare traveling has nothing to do with company’s production and operation,  so it can not be deducted before income tax.

2) Q: To organize non-unit of personnel traveling, whether can be deductible before the income tax?

    A: Can be bookkept in the corresponding activities, such as: conference fees, business publicity fees, business entertainment fee, etc., not completely non-deductible before  the income tax.

3.     Tourism fee for personal income tax:

1) In the marketing activities, enterprises and units gives the rewards to the staffs who have outstanding achievements in marketing performance. The rewards such as training courses, seminars, work visits and other tourism activities, are given to the individuals by free travel, tourism (including in kind, securities Etc.) shall be included in the taxable income of the marketing personnel in accordance with the expenses incurred and the personal income tax shall be levied in accordance with the law and shall be withheld by the enterprises and units providing the aforesaid expenses.

Such rewards for employees of the enterprise shall be combined with the salary in the current period, and the personal income tax shall be levied on the basis of the "salary and salary income". Such rewards for other personnel shall be included in the current labor income,” which shall levy personal income tax.

2) If the enterprise presents the gift to the individual, it shall be subject to one of the following circumstances, and the individual who acquires the income shall pay the personal income tax according to law, and the tax shall be withheld by the enterprise giving the gift; The gifts which the enterprise give to the individuals other than the unit, at the annual meeting, the symposium, the celebration and other activities, the personal income of the individual, shall use the full application of 20% tax rate to pay individual income tax, according to the "other income” in Tax policy.

To be continued ...