The decision of the general board of the Administrative Court of Justice regarding the non-inclusion of salary tax on welfare and incentive payments
Decision No. 140331390001065411 dated 5/9/1403 of the General Board of the Administrative Court of Justice
Welfare benefits are also tax exempt
The employee’s right, which is done for welfare and motivation purposes and without the truth of the definition of wages and salaries (child rights, family rights, commuting, kindergarten) is exempt from salary tax.
Cancellation letter No. 232/5290/p. dated 3/23/1401 Tax Risk Management and Technical Office of Tax Affairs Organization
First of all, the General Board of the Court of Administrative Justice previously accepted the payments of governmental and non-governmental authorities in the form of welfare and motivational matters without any restrictions based on the decree No. 601 dated 12/9/2013, amendment No. 9809970905810073 dated 1/27/1398 There is no sign of enclosing them.
Secondly, based on other opinions of the general board of the Administrative Court of Justice, including the decree No. 9909970905811956-1957 dated 19/12/2019, this board has issued a ruling to cancel the regulations, which by removing the punctuation mark (.) or mentioning exclusive examples of welfare and motivational examples was bound
Thirdly, the legislator has developed based on part 5 paragraph (a) of note 12 of the budget law of 1401 of the whole country and paragraph (f) and paragraph (p) of note 6 of the budget law of 1402 of the whole country in the scope of salary tax and its source, and the general board of the court of justice The administrative and tax specialized board of the bank, whose opinions issued by them, according to Article 93 of the Law of the Court of Administrative Justice, are the criteria of action for judicial and administrative authorities, based on several decrees issued, including decree No. 140109970905812685 dated 11/18/1401 140231390002394089 dated 9/1402 14. The General Board of the Court and Decree No. 606 dated 8/23/1401 of the Banking Tax Specialist Board, the provisions of the budget laws, maintaining the tax rulings contained in the Direct Taxes Law, as described in the third chapter of the third chapter of articles 82 to 92 in the topic of salary tax and other rulings. Salary tax has been declared in the laws, which are current and the basis of action, and what can be deduced from all the above-mentioned laws and regulations in addition to the budget laws is that various payments are made under the title of employee’s rights, which are made for welfare and motivational purposes and without the truth of the definition of wages and salaries. And without limiting the cases, including payments under the title of right, children’s right to have a family, amenities such as commuting, kindergarten and so on. which is paid to the employee, regardless of the fact that he is engaged in activities at the time of payment, or is on sick or paid leave, or the like (without considering the level of his efficiency, productivity and activity) from including taxes Salaries are external and in other words are exempt from salary tax. The provisions of Article 40 of the Law on Adding Articles to the Law on Regulating Part of Government Financial Regulations are only in the capacity of prescribing the payment of benefits in the public sector, and Articles 35 and 36 of the Labor Law of the Islamic Republic of Iran also confirm the absence of And counting such things as wages
Therefore, according to the above, letter No. 232/5290/p dated 3/23/1401 of the country’s tax affairs organization, which regardless of the mentioned cases, welfare and incentive affairs and tax exemption or non-inclusion of tax on them to limited cases, i.e. aid Kindergarten fee, food subsidy, commuting expenses, housing allowance, sports allowance and mobile phone allowance are limited and by removing the sign (.), he practically ignores the provisions of the laws and the votes of the General Board of the Administrative Court of Justice, outside the limits of authority and against the law. It is documented in paragraph 1 of Article 12 and Articles 13 and 88 of the Administrative Court of Justice Law approved in 1392 from and the date of issuance. This decision is revoked based on Article 93 of the Amended Administrative Court of Justice Law approved 2/10/1402 in the proceedings and decisions of judicial and administrative authorities. It is valid and a criterion of action.