Do athletes need to pay personal income tax for prize money and corporate awards?

2022-04-24 0 By

Mengniu Dairy and Alipay offered cash rewards of 10 million yuan and 13 million yuan after the women’s team won the gold medal.With the winter Olympic athletes in the field of gold and silver, followed by a variety of bonuses and awards.Do athletes need to pay individual income tax for their awards?Does the enterprise need to pay individual income tax for the reward?First of all, athletes who win prizes above the provincial level will be exempted from individual income tax.This is according to the law of the People’s Republic of China on individual income tax law stipulated in article 4, the people’s governments at the provincial level, ministries and commissions under the State Council and the Chinese people’s liberation army (PLA) army units above, and foreign organizations, international organizations issued by the science, education, technology, culture, health, sports, environmental protection, etc, shall be exempted from individual income tax.Alipay will give 13 million yuan to The Chinese women’s football team as a reward to the governments below the provincial level. In addition to the units above the provincial level, there will also be local governments below the provincial level to grant rewards to athletes.In this case, it is subject to “contingent income” tax.The term “contingent income” shall mean income derived by individuals from winning prizes, prizes, lotteries and other income of an accidental nature.In accordance with the state administration of taxation on personal collection of individual income tax for the income gained from bonus question of administrative regulations, the people in all walks of life have made outstanding contributions from under the provincial people’s government and its subordinate departments a one-off bonus income, regardless of its bonus from where, does not belong to the category of the tax exemption stipulated in the tax law,Individual income tax shall be levied according to the “contingent income” item, and withheld by the paying unit.Enterprises should pay taxes in accordance with the law if they reward athletes, it is equivalent to a direct donation from enterprises to individuals.In accordance with the provisions of Article 9 of the Enterprise Income Tax Law of the People’s Republic of China, the part of the expenditure of public welfare donations incurred by an enterprise within 12% of the total annual profit is allowed to be deducted when calculating the taxable income amount.The portion exceeding 12% of the total annual profits shall be deducted in the calculation of taxable income within three years after being allowed to be carried forward.Article 10 also stipulates that direct donation expenditures of enterprises shall not be deducted before tax.Therefore, athletes who receive donations and awards from local governments, enterprises, other organizations and individuals below the provincial level need to pay individual income tax according to the “contingent income”.This article source: Dahe Daily video reporter Hou Bingyu, Guangming network enterprise compliance to find the Central Plains manpower!Private letter public number details flexible employment, single injury, labor outsourcing, labor dispatch, social security agent, natural person open cooperation, artificial customer service to provide you with 24 hours online service!