What? Do you have to pay taxes to grab red envelopes online? Look down carefully!


The Ministry of Finance and the General Administration of Taxation promulgated the "Announcement on Individual Income Taxable Income Items Applicable to Individual Income Tax" and adjusted some items originally taxed according to "Other Income" to "Incidental Income" Items. The applicable tax rate for accidental income is 20%, which is the same as the original "Other Income" tax rate. The tax burden remains unchanged.


Is it included in the "accidental income" tax?


"Bulletin" pointed out that in business publicity, advertising and other activities, enterprises randomly give gifts to individuals other than their own units (including network red envelopes, the same below), as well as gifts to individuals other than their own units in annual meetings, symposiums, celebrations and other activities. The income of gifts obtained by individuals is in accordance with "accidental". Individual income tax is calculated and paid for the income item, except for gifts such as consumer vouchers, vouchers, vouchers, coupons and coupons given by enterprises with price discounts or concessions.


Specifically, in recent years, many enterprises carry out promotional business by issuing "network red envelope", and network red envelope has become a common marketing method. "Internet red envelope" includes not only cash network red envelope, but also all kinds of consumer vouchers, vouchers, vouchers, coupons and other non-cash network red envelope.


According to the "Circular of the State Administration of Taxation of the Ministry of Finance on Gifts for Enterprise Promotion and Exhibition Industry Concerning Personal Income Tax Issues" (Fiscal and Tax No. 50, 2011), enterprises randomly give gifts to individuals other than their own units in business publicity and advertising activities, as well as enterprises'annual meetings, symposiums, celebrations and other activities. Personal income tax shall be levied on the income from gifts given to individuals other than their own units while moving; no personal income tax shall be levied on the sale of goods (products) and services provided to individuals by enterprises through price discounts and discounts.


The Announcement does not change the tax exemption and levy provisions on gifts in Fiscal and Tax Document No. 50 [2011].

In nature, the network red envelope issued by enterprises also belongs to a form of gifts referred to in the Announcement. In order to further clarify and refine the policy operation calibre and facilitate the implementation of both sides, the Announcement clearly defines the scope of the gifts including the network red envelope. The tax collection and exemption policy of the network red envelope is based on the gift tax stipulated in the Announcement. Policy implementation, that is, the network red envelope issued by enterprises with the nature of winning a prize should pay personal income tax, but the network red envelope with the nature of sales discounts or concessions does not levy personal income tax.


It should be noted that the "network red envelope" referred to in the "bulletin" only includes the network red envelope issued by enterprises to individuals, excluding the network red envelope given to each other by relatives and friends. Gifts given by relatives and friends (including online red envelopes) are not within the scope of personal income tax.


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