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The State Administration of Taxation also stipulates that the enterprise's pre-tax deductions will be 4.289 billion pieces of liability insurance.

November 09, 2018 00:18
source: Brokerage China
edit:Eastern Fortune Network

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Summary
[The State Administration of Taxation also stipulates that the company's pre-tax deductions of 4.289 billion pieces of liability insurance will be of great interest.] The State Administration of Taxation recently issued the "Notice on Issues Concerning Pre-tax Deduction of Corporate Income Tax on Liability Insurance Fees", Employer Liability Insurance, Public Liability Insurance The issue of pre-tax deduction for liability insurance was clarified. In the first eight months of this year, the insurance industry added 4.289 billion liability insurance policies and liability insurance coverage of 466.11 trillion yuan. Many insurance industry players believe that liability insurance has developed rapidly in recent years. This policy will promote more companies to actively insure liability insurance, which is a major positive for non-auto insurance development. (broker China)

  This year's new 4.289 billion liability insurance policies have ushered in major positives!

The State Administration of Taxation recently issued the "Notice on Issues Concerning the Pre-tax Deduction of Corporate Income Tax on Liability Insurance Fees" (hereinafter referred to as the "Announcement"), and made clear the pre-tax deduction of liability insurance for employers' liability insurance and public liability insurance.

According to the announcement, enterprises participate in liability insurance such as employer liability insurance and public liability insurance, and the insurance premiums paid in accordance with the regulations are allowed to be deducted before the enterprise income tax. The announcement is applicable to the settlement of corporate income tax in 2018 and subsequent years.

What are the liability insurance for deductible premiums before tax?

According to the announcement, enterprises participate in liability insurance such as employer liability insurance and public liability insurance, and the insurance premiums paid in accordance with the regulations are allowed to be deducted before the enterprise income tax.

According to the State Administration of Taxation, with the development of China's economy, the frequency of use of liability insurance in business operations is increasing, which plays an important role in the risk of decentralized business operations, the protection of the rights and interests of the parties, and the promotion of social harmony and stability. Recently, relevant departments and enterprises have reported the pre-tax deduction of corporate income tax on liability insurance premiums such as employer liability insurance and public liability insurance. In order to unify the policy of pre-tax deduction of liability insurance premiums, it is convenient for taxpayers to implement, better promote enterprises to resolve operational liability risks, and enhance their ability to resist risks. The "Announcement" was issued.

Employer liability insurance, public liability insurance and other liability insurance are the accidents listed in the insurance policy of the enterprises participating in the liability insurance. When the third party is liable for damages, the insurer performs the insurance liability on his behalf.

Previously, the insurance premiums for companies participating in property insurance can be deducted before tax. According to the provisions of Article 46 of the "Regulations on the Implementation of the Enterprise Income Tax Law of the People's Republic of China": enterprises participating in property insurance shall be allowed to deduct the insurance premiums paid in accordance with the regulations. However, whether liability insurance can be counted as corporate property insurance is deducted. The regulations have not been clearly stipulated before. The "Announcement" made this blank area clear.

According to the State Administration of Taxation, since the insurance premiums paid by enterprises for liability insurance such as employer liability insurance and public liability insurance are actually incurred by enterprises, the Insurance Law also stipulates that property insurance business includes liability insurance. The relevant provisions of the Income Tax Law and its implementation regulations, the "Announcement" stipulates that enterprises participate in liability insurance for employer liability insurance, public liability insurance, etc., and the insurance premiums paid in accordance with the regulations are allowed to be deducted before the enterprise income tax.

Liability insurance can cover a lot of content, in addition to the employer liability insurance, public liability insurance, food safety liability insurance, construction safety liability insurance and other liability insurance listed in the announcement, can you also enjoy the income tax pre-tax deduction preferential policy?

Wang Min, director of the general non-life insurance contract for China's non-life insurance contract, believes that, according to its understanding, the liability insurance that can enjoy the pre-tax deduction of corporate income tax should be the liability insurance applicable to all enterprises and the liability for third party liability. It is only employer liability insurance and public liability insurance, and should include product liability insurance, professional liability insurance, safety production liability insurance, and environmental pollution liability insurance. This point needs to be further refined and clarified by the tax authorities in the follow-up practice.

According to the "Enterprise Income Tax Law of the People's Republic of China", the corporate income tax rate is 25%; small and small-profit enterprises that meet the requirements are subject to a corporate income tax rate of 20%. High-tech enterprises that the state needs to support, are subject to a corporate income tax rate of 15%.

In recent years, non-auto insurance represented by liability insurance has entered a period of rapid development. In the first eight months of this year, the insurance industry added 4.289 billion liability insurance policies and liability insurance coverage of 466.11 trillion yuan. Many insurance industry players believe that liability insurance has developed rapidly in recent years. This policy will promote more companies to actively insure liability insurance, which is a major positive for non-auto insurance development.

However, whether the above-mentioned 4.289 billion pieces of liability insurance policies can enjoy the preferential policies for pre-tax deduction of corporate income tax, it is also necessary to look at the specific implementation level.

What other commercial insurances have tax benefits?

Generally speaking, except for other commercial insurance premiums that can be deducted by the financial and taxation authorities of the State Council, the commercial insurance premiums paid by enterprises for investors or employees shall not be deducted. Then, what are the commercial insurances that can enjoy the tax preferential policy?

  Tax preferential policies enjoyed by enterprises:

1. The enterprise participates in liability insurance such as employer liability insurance and public liability insurance. The premiums paid by the enterprise can be deducted before tax.

The State Administration of Taxation announces the relevant issues concerning the pre-tax deduction of corporate income tax on liability insurance premiums. Enterprises participate in liability insurance for employer liability insurance, public liability insurance, etc., and the insurance premiums paid in accordance with the regulations are allowed to be deducted before corporate income tax.

2. The enterprise participates in property insurance, and the premiums paid by the enterprise can be deducted before tax.

Article 46 of the Regulations for the Implementation of the Enterprise Income Tax Law of the People's Republic of China: Enterprises participating in property insurance shall be allowed to deduct the insurance premiums paid in accordance with the regulations.

3. The enterprise shall insure personal accident insurance for the employees, and the premiums paid by the enterprise may be deducted before tax.

Article 1 of the "Announcement of the State Administration of Taxation on Issues Concerning Enterprise Income Taxes" stipulates that the expenses incurred by employees of enterprises for personal accident insurance expenses incurred by means of public transportation shall be allowed to be deducted when calculating the taxable income.

4. The enterprise purchases supplementary endowment insurance and supplementary medical insurance for employees, and the premiums that do not exceed 5% of the total wages of employees can be deducted before tax.

Article 25, Paragraph 2 of the Regulations for the Implementation of the Enterprise Income Tax Law of the People's Republic of China stipulates that the supplementary pension insurance premiums and supplementary medical insurance premiums paid by enterprises for investors or employees shall be within the scope and standards prescribed by the financial and tax authorities of the State Council. Within, the deduction is allowed.

The Notice on Supplementary Pension Insurance and Supplementary Medical Insurance Fees Related to Enterprise Income Tax Policies stipulates that the enterprise shall pay supplementary pension insurance premiums and supplementary medical insurance premiums for all employees employed or employed in the enterprise in accordance with relevant state policies. The part that does not exceed 5% of the total wages of employees shall be deducted when calculating the taxable income; the excess will not be deducted.

  Tax incentives for individuals:

1. Personal insurance tax premium health insurance, individuals can deduct 200 yuan before tax every month, 2400 yuan per year.

The “Notice on Promoting the Implementation of the Commercial Health Insurance Individual Income Tax Pilot Policy to National Implementation” states that individuals purchase commercial health that meets the requirements.Insurance ProductsThe expenditure is allowed to be deducted before tax calculation in the current year (month), and the deduction limit is 2,400 yuan / year (200 yuan / month). The unit's expenditure for the purchase of eligible commercial health insurance products for employees shall be separately included in the employee's personal salary and salaries, which shall be treated as individual purchases and deducted according to the above-mentioned limits.

2, personal insurance tax extended pension insurance, the tax deferred limit is determined by not less than 6% of the taxable income of the year and 12,000 yuan.

The Notice on Launching a Pilot Program for Personal Tax Deferred Commercial Endowment Insurance announced that since May 1st, pilots of tax extension and old-age insurance have been implemented in Shanghai, Fujian (including Xiamen) and Suzhou Industrial Park. For individuals in the pilot area to purchase the eligible commercial pension insurance products through the personal commercial pension fund account, they are allowed to deduct before tax within certain standards; the investment income included in the personal commercial pension fund account is not levied personal income tax; Personal income tax is imposed on the pension. The deduction limit is determined by not less than 6% of the taxable income of the current year and a low of 12,000 yuan.

(Article source: brokerage China)

                (Original title: Dali is good! The State Administration of Taxation also stipulates that the enterprise's pre-tax deductions will be 4.289 billion pieces of liability insurance to welcome major benefits)

                (Editor: DF372)

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