A company rewards marketing personnel with free travel. Do employees need to pay personal income tax?

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Hello, some employees of our company have outstanding marketing performance, and the company rewards them with free travel to Taiwan, all of which are borne by the company. Do these employees need to pay personal income tax?

Professional Answers

According to the provisions of the "Notice of the Ministry of Finance and the State Administration of Taxation on Personal Income Tax Policies Regarding Enterprises Providing Personal Incentives to Marketers in the Way of Free Travel", in accordance with my country's current personal income tax policies The relevant provisions of income tax laws and regulations stipulate that in commodity marketing activities, enterprises and units organize tourism activities in the name of training courses, seminars, work inspections, etc. for personnel with outstanding marketing performance, and provide marketing performance rewards to individuals by waiving travel expenses and tourism expenses ( Including physical objects, securities, etc.), the full amount of the expenses incurred shall be included in the taxable income of the marketing personnel, and personal income tax shall be levied in accordance with the law, and shall be withheld and paid by the enterprises and units that provide the above expenses. Among them, such rewards enjoyed by enterprise employees should be combined with the wages and salaries of the current period, and personal income tax should be levied according to the "wage and salary income" item; such rewards enjoyed by other personnel should be regarded as labor income for the current period, according to the "labor service income" item. Personal income tax is levied on “remuneration income” items.