Can the social insurance premiums not actually paid by enterprises be deducted before tax?

Can the social insurance premiums not actually paid by enterprises be deducted before tax?

According to Article 35 of the Regulations for the Implementation of the Enterprise Income Tax Law (Order No.512 of the State Council), the basic social insurance premiums and housing accumulation funds paid by enterprises for employees in accordance with the scope and standards stipulated by the relevant competent departments of the State Council or the provincial people's government are allowed to be deducted. Supplementary endowment insurance premiums and supplementary medical insurance premiums paid by enterprises for investors or employees are allowed to be deducted within the scope and standards stipulated by the competent departments of finance and taxation of the State Council. At the same time, according to Article 6 of the Announcement of People's Republic of China (PRC) and State Taxation Administration of The People's Republic of China on Several Issues Concerning Enterprise Income Tax (People's Republic of China (PRC) State Taxation Administration of The People's Republic of China Announcement No.201KLOC-0/No.34), the relevant costs and expenses actually incurred by the enterprise in that year are not timely due to various reasons, but valid vouchers of costs and expenses should be supplemented at the time of final settlement.

Therefore, the social insurance premium and housing accumulation fund that the enterprise did not actually pay at the time of final settlement shall not be deducted before the enterprise income tax.

Can the wages of employees who have not paid social security be deducted before tax?

If the wages and salaries of these employees have been declared according to law and are reasonable, they are allowed to be deducted before tax regardless of whether they have paid social security. If it is not a reasonable salary, it cannot be deducted before tax.

Enterprises should pay social insurance for employees, but unpaid wages do not conform to the principle of rationality and cannot be deducted before tax. If individual income tax is not withheld and remitted, the attribute of wages and salaries cannot be proved, and it is not allowed to be deducted before enterprise income tax.

According to the Notice of State Taxation Administration of The People's Republic of China on Deduction of Wages and Salaries and Employee Welfare Expenses (Guo [2009] No.3), the term "reasonable wages and salaries" as mentioned in Article 34 of the Regulations for the Implementation of the Enterprise Income Tax Law refers to the wages and salaries actually paid to employees by the enterprise according to the wage and salary system formulated by the shareholders' meeting, the board of directors, the remuneration committee or relevant management institutions.

Whether the social security fees not actually paid by the enterprise can be deducted before tax is introduced above. Both employees' wages and social security expenses are vouchers that need to be paid, so that enterprise income tax can be deducted before tax when it is settled, otherwise it cannot be deducted. Please pay attention to the update of this website for more exciting content of finance and taxation!