Don'T Forget To Withhold A Tax On The Agreed Unpaid Interest.

Case brief: Recently, tax inspectors found that in May 2014, due to tight funds, the company borrowed money from the company's shareholders.

According to the agreement, an enterprise borrows one year from the interest rate of the bank at the same time, and will repay the principal and interest at the end of the year.

In May 2015, due to the tight funding of the enterprises, the shareholders and the shareholders were delayed to pay the principal and interest of the loan for half a year.

During the accounting process, the company will pay interest on the quarterly basis to the shareholders' personal current account. However, it fails to withhold personal income tax when it is prepared to pay unpaid interest.

However, financial personnel think that the withholding of personal income tax should be paid.

Withholding the proceeds, the interest withheld before payment can be withheld temporarily.

Tax analysis: according to

In accordance with the thirty-fifth provision of the law implementing regulations, withholding agents shall pay taxes in accordance with the provisions of the tax law, pay taxes on time, and make special records for reference.

The payment referred to in the preceding paragraph includes cash payment, remittance payment, pfer payment and securities, in kind and other forms of payment.

At the same time, according to the provisions of the State Administration of Taxation on the issue of Taxation on interest, dividends and bonuses (tax Letter No. 1997] No. 656, the withholding agent shall receive the interest, dividends and bonus income that the taxpayer is entitled to through the withholding agent.

When a subject is assigned to a personal name, the income owner has the right to withdraw at any time. In this case, when the withholding agent assigns the interest, dividends and dividends to his personal name, he should consider that the payment should be deducted from the personal income tax payable by the individual according to the tax regulations and times.

Related links:

The notice on the pilot policy of pre tax deduction for staff education funds (fiscal 2013 [14]) and the notice of the Ministry of Finance and the State Administration of Taxation on the pilot policy for pre tax deduction of employees' education funds and individual income tax on equity awards in the Suzhou Industrial Park (fiscal 95 [2013]) have stipulated that the education expenditure of workers in Zhongguancun, East Lake, Zhang Jiang, three national independent innovation demonstration areas and the Hefei Wuhu independent innovation comprehensive test area (hereinafter referred to as the pilot area) and the high-tech enterprises in Suzhou Industrial Park will not exceed the 8% of the gross salary, and are allowed to be deducted when calculating the taxable income of the enterprise income tax; the excess part is allowed to be deducted in the next tax year. The Ministry of Finance and the State Administration of Taxation on Zhongguancun, East Lake, Zhang Jiang national independent innovation demonstration zone and Hefei Wuhu independent innovation comprehensive experimental zone.

A few days ago, the Ministry of Finance and the State Administration of Taxation on the policy of pre tax deduction for staff and workers in high and new technology enterprises (fiscal 2015 [63]) extended the scope to all high-tech enterprises and implemented since January 1, 2015.

After that, the pre tax deduction of staff education funds will be divided into three cases. Taxpayers should distinguish them in practical operation.

The first case.

In general, the expenses of staff education expenditure that are not exceeding 2.5% of the total wages and salaries will be deducted, and the excess part will be deducted in the next tax year.

Second cases.

High and new technology enterprises and advanced technology service enterprises.

1. the expenditure of staff and workers in education of new and high technology enterprises, which is not more than 8% of the total wages and salaries, is allowed to be deducted when calculating the taxable income of enterprise income tax. The excess part is allowed to be deducted in the next tax year.

2. according to the Circular of the Ministry of Finance and the State Administration of Taxation of the Ministry of Commerce, the Ministry of Commerce and the Ministry of science and technology of the Ministry of Commerce and the State Development and Reform Commission on the issue of enterprise income tax policies concerning advanced technology service enterprises (fiscal 65 [No. 2010]), the expenses of staff education funds that have been recognized by the advanced technology oriented service enterprises, which do not exceed 8% of the total wage and salaries, are allowed to be deducted when calculating the taxable income amount; the excess part is allowed to be deducted in the subsequent tax year.

Third cases (staff training fee).

1. according to the notice on Further Encouraging the software industry and the integrated circuit industry to develop the enterprise income tax policy (fiscal 27 [2012]), the employees' training costs of integrated circuit design enterprises and qualified software enterprises are fully deducted before tax.

2. according to the "notice on tax policies supporting the development of animation industry" (fiscal 65 [2009]), the cost of training for animation enterprises is fully deducted before tax deduction.

3. nuclear power plant operator training fee.

According to the notice issued by the State Administration of Taxation on certain issues concerning the taxable income of enterprise income tax (No. twenty-ninth of the State Administration of Taxation Announcement No. 2014), the cost of training for nuclear power plant operators by nuclear power generation enterprises can be deducted as the cost of electricity generation before taxes.

4. aviation enterprise training fee.

According to the notice issued by the State Administration of Taxation on certain issues concerning enterprise income tax (No. thirty-fourth of the State Administration of Taxation announcement 2011), aircrew training expenses, flight training fees, crew training fees, air defense training costs and other air training costs actually occurred in aviation enterprises, according to the twenty-seventh provision of the implementing regulations, they can be used as deductions for the pportation cost of aviation enterprises before taxes.