Can social security late fees be deducted before tax?

Enterprises should pay social security within the prescribed time limit. If the time limit is exceeded, they will be charged a late fee. Social security late fees are different from tax late fees, so can social security late fees be deducted before tax?

Pre-tax deduction of social security late fees

According to the provisions of the Social Insurance Law, if the employer fails to pay the social insurance premium in full and on time, the social insurance premium collection agency shall order it to pay it within a time limit or make up for it, and from the date of default, an overdue fine of five ten thousandths shall be charged on a daily basis; Failing to pay within the time limit, the relevant administrative departments shall impose a fine of more than one time and less than three times the amount owed.

The enterprise income tax law stipulates that tax late fees, fines, fines and confiscated property losses are not allowed to be deducted before tax, but it is not expressly stipulated that social security late fees cannot be deducted. Social security late fees are not tax late fees, so pre-tax deduction is allowed.

However, local policies are different. For example, in the Notice of Opinions of Fujian Provincial State Taxation Bureau on Several Issues of Enterprise Income Tax, the opinions on whether the social insurance premium late fees can be deducted before tax are as follows: The social insurance premium late fees collected according to the relevant provisions of the Provisional Regulations on the Collection and Payment of Social Insurance Fees (the State Council Order No.259) shall be compared with the tax late fees and shall not be deducted before tax.

Therefore, whether the social security late payment fee can be deducted before tax should be consulted with the local tax authorities.

Accounting treatment of social security late payment fee

Social security late fees and tax late fees are recorded in the same way, and both are included in "non-operating expenses"

Debit: non-operating expenses-late fees

Loans: bank deposits

Reminder: For late payment fees that cannot be deducted before tax, the tax amount should be adjusted and increased in time when the enterprise income tax is settled, so as to avoid tax risks.