Does the company need to pay a tax for organizing group tours for employees?

Nowadays, many companies have the benefit of group travel. Do accountants still need to incorporate this part into employees' salaries for withholding personal income tax when making accounts?

do employees have to pay a tax for group travel?

according to article 8 of the regulations for the implementation of the individual income tax law of the people's Republic of China,

the forms of personal income include cash, physical objects, securities and other forms of economic benefits.

if the income is other forms of economic benefits, the taxable income shall be verified with reference to the market price.

according to the principles stipulated in the individual income tax law, individual income tax should be paid for the benefits, whether in cash or in kind, given to individuals by the employer. However, in principle, individual income tax is not levied on the benefits enjoyed by the collective, which are indivisible and non-cash.

(Refer to

Question: The unit organizes the physical examination of employees and uniformly pays the medical examination fee to the medical examination unit. The medical examination expenses are uniformly accounted by the unit and are not distributed to individuals. Do such welfare employees pay personal income tax?

answer: according to the current individual income tax law, income from wages and salaries refers to wages, salaries, bonuses, year-end salary increase, labor dividends, allowances and subsidies and other income related to employment or employment. Personal income tax shall be paid in accordance with the law for the benefits, whether in cash or in kind, issued to individuals by the employed units. However, in principle, personal income tax is not levied on non-cash benefits enjoyed by the collective, which are inseparable and not quantified to individuals. )

Therefore, company benefits such as organizing group tours and physical examinations for employees are not subject to personal income tax. However, if the company settles with the medical examination institution according to the medical examination expenses of each employee, it belongs to the expenses that can be divided and quantified to the employees, so it is necessary to incorporate this part of the expenses into wages and salary income to calculate and pay personal income tax.

how to make an account when an enterprise organizes a group tour for employees?

Accounting entries

Debit: management expenses-welfare expenses

Loan: bank deposits

tax treatment

1. Organized by the trade union, paid from the trade union funds. Enterprises without trade unions shall be paid from welfare funds. If the total annual welfare expenses do not exceed 14% of the total wages, they can be deducted before income tax.

2. Non-monetary salary is included in the employee's salary.