Today's study: Do you want to buy insurance? Which insurance can be deducted before corporate income

Can the insurance purchased by the enterprise be deducted from the corporate income tax? What can be deducted? Let's find out together!

1. Insurance Beneficiary: Employee

(I) Qualified “five insurances and one fund”, namely social security, medical insurance, and housing provident fund

Enterprises are allowed to deduct basic social insurance premiums and housing provident funds such as basic pension insurance premiums, basic medical insurance premiums, unemployment insurance premiums, work-related injury insurance premiums, and maternity insurance premiums paid for their employees within the scope and standards prescribed by the relevant competent departments of the State Council or provincial people's governments.

(II) Eligible supplementary pension insurance premiums and supplementary medical insurance premiums

The supplementary pension insurance premiums and supplementary medical insurance premiums paid by an enterprise for all employees serving or employed in the enterprise in accordance with relevant national policies and regulations, provided that the amount does not exceed 5% of the total wages of the employees, shall be allowed to be deducted when calculating the taxable income.

(III) Personal safety insurance premiums paid for special types of work:

Personal safety insurance premiums paid by enterprises for employees in special occupations in accordance with relevant national regulations; other commercial insurance premiums that can be deducted as stipulated by the financial and taxation authorities of the State Council; and other commercial insurance premiums that can be deducted when calculating taxable income.

Note: In addition to the above two types of insurance premiums, commercial insurance premiums paid by enterprises for investors or employees are not deductible.

(IV) Personal accident insurance premium expenditure in corporate travel expenses

Enterprises are allowed to deduct personal accident insurance premiums incurred by their employees while traveling on business trips when calculating their taxable income.

2. Insurance Beneficiary: Enterprise

(I) Property insurance premium

If an enterprise participates in property insurance, the insurance premiums paid in accordance with regulations are allowed to be deducted.

(II) Liability Insurance Premium

If an enterprise participates in liability insurance such as employer liability insurance and public liability insurance, the insurance premiums paid in accordance with regulations are allowed to be deducted before corporate income tax.

(III) Deposit insurance premiums paid by banking financial institutions

Deposit insurance premiums paid by banking financial institutions in accordance with the relevant provisions of the Deposit Insurance Regulations and at a deposit insurance premium rate not exceeding 1.6 per 10,000 are allowed to be deducted from corporate income tax

Policy basis:

Regulations for the Implementation of the Enterprise Income Tax Law of the People's Republic of China (Decree No. 512 of the State Council of the People's Republic of China)

Notice of the Ministry of Finance and the State Administration of Taxation on Enterprise Income Tax Policy Issues Related to Supplementary Pension Insurance and Supplementary Medical Insurance Premiums (Finance and Taxation [2009] No. 27)

Announcement of the State Administration of Taxation on Issues Concerning Corporate Income Tax (Announcement of the State Administration of Taxation No. 80, 2016)

Announcement of the State Administration of Taxation on Issues Concerning the Pre-tax Deduction of Liability Insurance Premiums for Corporate Income Tax (Announcement of the State Administration of Taxation No. 52, 2018)

Notice of the Ministry of Finance and the State Administration of Taxation on Policy Issues Concerning Pre-tax Deduction of Deposit Insurance Premiums for Banking Financial Institutions (Finance and Taxation [2016] No. 106)

#Finance and Taxation# #ChineseNewYearwithLove# #One financial and tax knowledge point every day# #New Year's greetings from all over the world# #See each other on the headlines# #Spring Festival Micro Record丨Going Home# #I met old friends again on Toutiao#