财税[2004]11号

颁布日期：20040120 　实施日期：20040120 　颁布单位：财政部、 国家税务总局

CaiShui [2004] No.11

January 20， 2004

The finance offices or bureaus and the local taxation bureaus of all provinces， autonomous regions， municipalities directly under the Central Government， and cities directly under state planning， and the finance bureau of Xinjiang Production and Construction Corps：

Recently， we have heard from the finance departments of some regions that it has become a widespread phenomenon that some enterprises and entities would grant awards to their employees with outstanding achievements in marketing by organizing training classes， proseminars， and work visits free of charge at home or abroad， and they ask the State to further clarify the policy of individual income tax on these kinds of awards. Upon deliberation， we hereby clarify the relevant individual income tax policy concerning the granting of awards to marketing personnel for their outstanding achievements by an enterprise or entity in the form of free training classes， proseminars， or work visits：

According to the relevant provisions of the existing individual income tax laws and regulations of our country， the awards （including the material form and securities， etc.） for an individual's outstanding achievements in marketing， which are granted by enterprises or entities through organizing tourism activities in the name of training classes， proseminars or work visits by exempting him/her from travel or touring expenses， shall be reckoned in the taxable income of the sales staff member in full amount on the basis of the expenses occurred， and the individual income tax shall be collected in accordance with the law and be withheld by the enterprises or entities that bear the foregoing expenditures. The awards enjoyed by the employees of an enterprise shall be included into the wages and salaries of the current term， and the individual income tax shall be collected on the item of “income from wages and salaries”。 The awards enjoyed by other persons shall be regarded as the labor income of the current term， and the individual income tax shall be collected on the item of “income from labor remunerations”。

The above prescriptions shall be implemented as of the date of the promulgation of this Circular.