Research On Taxability Of Employee Benefits

Employee benefits is one of the important parts of the worker’s income, which mainly comes in two forms: statutory benefits and the non-statutory benefits. Statutory benefits include endowment Insurance, medical insurance, unemployment insurance, etc. are collectively called the ’’Five social insurance and one housing fund’’. And other benefits except the statutory benefits can be called non-statutory employee benefits, such as housing subsidy, transportation allowance and so on. The United States, Australia and other countries have already deal with the tax of employee’s benefits, and be provided in the form of tax law,and have carry out many effective TAX practices. In China, the previous tax reform ignored the problem of taxation of employee’s benefits thanks to a late starting of welfare work.Employees could get more and more types of benefits along with China’s economy develop and the diversity methods of payment. These benefits often far away from the scope of the adjustment about tax, and it is the result of unfair income of workers and the erosion of the tax base. So given enough time, the above situation will cause a larger gap between the resident income and led to the loss of national tax. The taxability of employee benefits is an issue that our country has to resolve in the process of taxing in accordance with the law.There are five parts besides introduction and conclusion in the text.First part: Introduce questions. Introduce the question of this text by means of the tax of moon cake, that is the employee benefits whether or not pay taxes. There are two different opinions, someone support it and others oppose it.Second part: Analysis employee’s benefits. This part start from the concept of employee’s benefits, which will be divided into statutory benefits and non-statutory employee benefits.And there will are some introduce about the two kinds of benefits, which foreshadow the analysis of taxability about employee’s benefits.Third part: Using the basic principles of tax analysis the employee’s benefits whether or not workable. This part analysis the taxability of the statutory benefits and non-statutory benefits on the basis of principle of fairness and efficiency about tax and will come to a conclusion. So, statutory benefits should not taxability and non-statutory employee benefits should taxability, which is based on the principle of tax.Fourth part: Using the method of legal explanation analysis taxability of employee’sbenefits. This part analysis some relevant article of law by using semantic interpretation,which mainly from the laws and regulations about individual income tax and business tax,and explore the attitudes about statutory benefits free to tax and non-statutory benefits pay tax of our country.Fifth part: Investigation extraterritorial employee benefits taxation model, combined with our specific conditions. Improve the advices of individual income tax. This part makes some advices about it so that the system more perfect.