According to the enterprise income tax deduction standard, the expenses reimbursed by the company are only allowed to be deducted before the enterprise income tax if they are related to the company's daily production and operation, otherwise they will be identified as tax evasion by the inspection bureau. The company is an independent legal person, and the shareholders take money from the company to include personal consumption in the company's accounts, which should be regarded as the company giving dividends to shareholders, and then the shareholders take the dividends to consume. The company shall withhold and pay 20% of the individual income tax to shareholders according to the income of interest, dividends and bonuses, and if the company does not withhold, the inspection bureau shall recover the tax and impose a fine of half as much as the company's failure to withhold.
In practice, the biggest risk is that shareholders borrow money from the company, and many bosses still know a little bit about the tax law, thinking that I only need to pay it back within a year, and then I will pay taxes according to dividends after a year, and I will borrow it again after a period of time after returning it, which circumvents the regulation of one year.
According to Guo Shui Fa No. 2005 No. 120, the management of individual investors' borrowings from their investment enterprises has been strengthened, and loans with a maturity of more than one year that have not been used for the production and operation of enterprises shall be taxed in strict accordance with relevant regulations. However, many people do not pay attention to the premise, which prescribes that the tax authorities at all levels should strengthen the collection and management of individual income tax for individual industrial and commercial households, investors of sole proprietorship enterprises and partnerships, as well as individuals who independently engage in labor activities.
The one-year period is limited to sole traders, individuals and partnerships, not corporations. How long is the company? In Cai Shui No. 2003 No. 158, it is stipulated that during the tax year, an individual investor borrows money from its investment enterprise (except for sole proprietorship enterprises and partnerships) after the end of the tax yearIf it is neither repaid nor used for the production and operation of the enterprise, the unrepaid loan can be regarded as the dividend distribution of the enterprise to individual investors, and the individual income tax shall be levied according to the interest, dividend and bonus income items.
This is talking about a year being a tax yearThe tax year is from January 1 to December 31 of the Gregorian calendar。So no matter what month you borrowed money from the company, you have to pay it back by December 31, not until the end of the year. Cai Shui 2008 No. 83 also continues this spirit, borrowing money from the company to buy a house, buy a car, and register the name of yourself or a family member within the year of the loan, instead of waiting until 12 months to repay, otherwise 20% of the income from interest, dividends and bonuses will be taxed.