Today, the Beijing Winter Olympics are in full swing. As of press time, Chinese athletes have gained a total of 3 gold and 2 silver.
Athletes win gold and silver on the field, and with it comes a variety of rewards. Not only will the state issue bonuses to athletes who win Olympic medals, but the provincial, municipal and county governments will often give different amounts of bonuses to athletes from the local area.
According to the Jiamusi government affairs public account, on February 8, Nie Ying, vice mayor of Jiamusi City, and the leaders of the Municipal Sports Bureau came to Wu Dajing's home to congratulate and comfort Wu Dajing's parents and family, and sent them a reward of 1 million yuan. On the evening of February 7, the men's 1000-meter short track speed skating competition at the Beijing Winter Olympics was held at the Capital Gymnasium, and after a fierce competition, China's Ren Ziwei, Li Wenlong and Wu Dajing won the first and fourth places respectively.
Image source: Jiamusi government affairs public account
On the evening of February 6, at the final of the Women's Asian Cup, the Chinese women's football team defeated the Korean team 3:2 and won the Asian Cup championship after 16 years.
On the night of the women's football team's victory, Mengniu Dairy announced on the official Weibo: to strengthen the women's football team to win the championship! Mengniu takes the lead in ten million cash prizes!
Image source: Mengniu official Weibo
So, here's the problem:
In addition to cheering and cheering for athletes,
Are you also curious?
Bonuses earned by athletes
Do I have to pay personal income tax?
Companies give incentives to athletes
Can I be deducted before tax?
The reporter got the answer from the State Administration of Taxation.
1. Do athletes pay individual tax when they receive rewards?
(1) Athletes who receive prizes at or above the provincial level are exempt from personal income tax
Pursuant to Article 4 of the Individual Income Tax Law of the People's Republic of China, bonuses issued by provincial-level people's governments, ministries and commissions under the State Council, units at or above the level of the People's Liberation Army at or above the Chinese People's Liberation Army, as well as foreign organizations and international organizations, in the fields of science, education, technology, culture, health, sports, and environmental protection, are exempt from individual income tax.
(2) Government incentives below the provincial level shall be withheld by the paying unit for individual income tax
For rewards from governments below the provincial level, in accordance with the provisions of the Reply of the State Administration of Taxation on the Issue of Individual Income Tax on the Collection of Individual Income Tax on Bonus Income Obtained by Individuals (Guo Shui Han [1998] No. 293), the one-time incentive income obtained by individuals from the people's governments below the provincial level and their subordinate departments for making outstanding contributions in various walks of life, regardless of where the bonus comes from, does not fall within the tax exemption scope stipulated in the tax law, and shall be levied individual income tax according to the "incidental income" item, and the paying unit shall withhold individual income tax.
(3) Athletes participating in the Beijing 2022 Winter Olympic and Paralympic Winter Games are exempt from individual tax in accordance with current laws and regulations
According to the Notice of the Ministry of Finance, the State Administration of Taxation and the General Administration of Customs on the Tax Policies of the Beijing 2022 Winter Olympic and Paralympic Winter Games (Cai Shui [2017] No. 60), the bonus and other reward income of participating athletes due to the Beijing 2022 Winter Olympic Games, Winter Paralympic Games and Test Matches shall be exempted from personal income tax in accordance with the relevant provisions of the current tax laws and regulations.
2. Can the incentives given by enterprises to athletes be deducted before tax?
According to the Notice of the Ministry of Finance, the State Administration of Taxation and the General Administration of Customs on the Tax Policies of the Beijing 2022 Winter Olympic and Paralympic Winter Games (Cai Shui [2017] No. 60), the funds and material expenses donated by individuals to the Beijing 2022 Winter Olympic Games, Winter Paralympic Games and Test Games can be fully deducted when calculating their taxable income.
The reward given by the enterprise to the athlete is equivalent to the direct donation of the enterprise to the individual. According to Article 10 of the Enterprise Income Tax Law of the People's Republic of China, its direct donation expenses shall not be deducted before tax.
Source Rule of Law Daily | Author Cai Yanhong
Editor: Wang Qiong
Process Editor Tai Shaofeng