Overview of the latest tax policies
1. Jiangsu Province issued the "Notice on the Release of the 2024 Social Insurance Base" (Su Ren She Fa [2024] No. 38) jointly by the Provincial Human Resources and Social Security Department, Provincial Department of Finance, Provincial Medical Security Bureau, and Provincial Taxation Bureau. The notice specifies that the upper limit for social insurance contribution wages in 2024 is 24,396 yuan, and the lower limit is 4,879 yuan. The supplementary collection of social insurance premiums (basic endowment insurance for employees, basic medical insurance for employees, unemployment insurance, work injury insurance, and maternity insurance) will begin in October.
Notice: Participating units and their employees can pay the supplementary difference arising from the adjustment of the contribution wage base in installments or as a lump sum before the end of 2024. No late payment fees or interest will be charged during this period. Please complete the declaration and payment within the specified time limit.
2. The 2024 edition of the "Regulations on Railway Passenger Transportation" of China State Railway Group Co., Ltd. has been officially released. Hot issues on the input VAT deduction of transportation expenses:
① What documents can be used as supporting documents for the deduction of purchased domestic passenger transportation services?
A: For general VAT taxpayers purchasing domestic passenger transportation services, the following documents can be used as supporting documents for input VAT deduction:
● VAT special invoices (including fully digital electronic invoices with the words "VAT special invoice")
● Electronic ordinary VAT invoices
● Electronic airline tickets itineraries indicating passenger information
● Railway tickets and other passenger tickets such as highway and waterway tickets
② Our company is a general taxpayer. We invited university experts to conduct employee training and paid for their round-trip train tickets. Can we deduct the input VAT according to passenger transportation services?
A: No.
According to the "Announcement of the State Taxation Administration on Value-Added Tax Collection Issues such as Input Tax Deduction for Domestic Passenger Transportation Services" (Announcement No. 31 of 2019 of the State Taxation Administration), general VAT taxpayers purchasing domestic passenger transportation services are allowed to deduct the input VAT from the output VAT. This refers to employees with a legitimate employment relationship with the company, and the domestic passenger transportation expenses incurred are allowed to deduct their input VAT. If the taxpayer pays for passenger transportation expenses for non-employees, it cannot be included in the deductible scope.
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