【やらなきゃ損！】旅行を可能な限り経費にする方法について税理士が解説します

Summary

This video offers valuable insights into how companies can effectively manage employee trips, particularly focusing on making them deductible as business expenses. The discussion highlights key conditions for considering travel as welfare expenses, such as limiting company contributions, keeping trips within 4-5 days, ensuring participation from half of the employees, and avoiding payments to non-participating employees. It also explains how different types of trips (like training or incentive trips) require careful documentation to comply with tax regulations. The video further explores options for subsidizing employee travel and managing the associated paperwork to ensure smooth and legal tax deductions.

Takeaways

• 😀 You can reduce the cost of company trips by classifying them as employee welfare expenses, but you need to meet certain conditions.
• 😀 The company’s contribution should be a small amount for the trip to be considered a welfare expense, ideally under 10,000 yen per employee.
• 😀 For employee welfare expenses, the trip must be no longer than 4 nights and 5 days. Extending the duration may disqualify the trip from being classified as a welfare expense.
• 😀 At least half of the employees at the workplace need to participate in the trip for it to be eligible as a welfare expense.
• 😀 Employees who are absent should not receive compensation for the trip, or the entire trip could be disqualified from welfare expenses.
• 😀 The trip should not be for entertaining clients; it must be for employee welfare to qualify as a welfare expense, not a business expense.
• 😀 If a company wants to take family members of employees on the trip, the company cannot cover their costs as welfare expenses; those would count as employee income.
• 😀 If the trip is for business purposes, such as preparing for a new store or inspecting a production site, the costs could be considered as business travel expenses, not welfare expenses.
• 😀 Companies should keep detailed records, such as participation lists, itineraries, receipts, and photos, to support the trip’s classification in case of a tax audit.
• 😀 When the company provides a travel subsidy, it should be done under a defined welfare plan. The company needs to book the trip and then subtract the subsidy from the employee's expenses to avoid tax complications.

Q & A

What is the main topic of this video?

The video focuses on how to maximize travel expenses by making them deductible for tax purposes, particularly in the context of company-sponsored employee trips.

Why is it important to consider the cost of a company-sponsored trip when claiming it as a tax expense?

The company’s share of the travel expenses must remain a reasonable amount. If the company's contribution exceeds a certain limit, it might not be deductible as a welfare expense. The threshold is usually around 10,000 yen per employee.

What are the key conditions for a company trip to be considered a welfare expense?

To qualify as a welfare expense, the trip should meet the following conditions: the company’s contribution is small (under 10,000 yen per employee), the trip lasts no more than 4 nights and 5 days, and at least 50% of employees participate.

What happens if the company’s contribution exceeds 10,000 yen per employee?

If the company’s contribution exceeds 10,000 yen per employee, it becomes questionable whether the trip can be considered a welfare expense, and it might not be deductible for tax purposes.

Can a trip longer than 4 nights and 5 days still qualify as a deductible expense?

No. The trip must last 4 nights and 5 days or fewer. If the trip exceeds this duration, even by one day, it may lose eligibility for tax deduction as a welfare expense.

What does it mean for a trip to be considered as 'business-related' rather than for employee welfare?

If the purpose of the trip is for business, such as a company meeting or business training, the expenses may be categorized as business travel costs rather than welfare expenses.

Can family members of employees be included in company-sponsored trips for tax purposes?

Generally, no. Expenses for family members are considered personal, and thus, not deductible as a welfare expense. If the company covers their travel costs, these might be considered as salary for the employee.

What documentation should be kept to claim a company trip as a welfare expense?

To justify the trip as a welfare expense, the company should maintain records such as a participant list, travel itinerary, receipts for expenses, and any other documents proving the trip meets the necessary requirements.

What is the role of the company’s contribution when determining whether a trip is deductible?

The company’s contribution is the determining factor in whether a trip can be considered a welfare expense. If the company’s contribution is deemed excessive, the entire trip may not be deductible.

What should a company do if employees request reimbursement for trip expenses that were paid for by the company?

The company should not directly reimburse employees for their trip expenses if they were already covered as a welfare expense. If a reimbursement is necessary, it should be handled carefully to avoid it being treated as taxable income.