0 Preface
When an enterprise is in good operating conditions and has abundant cash flow , it is inevitable that there will be some idle funds. If the enterprise expects to invest the idle funds to increase value, then securities investment is a good choice, then the enterprise is engaged in How should transactions in financial products such as stocks be taxed?
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1 Policy basis
Enterprises engaged in securities transactions involve: stamp duty (collected by securities companies), value-added tax, and corporate income tax.
Stamp tax is collected by the securities company on its behalf.
The "Interim Regulations of the People's Republic of China on Business Tax " implemented on January 1, 2009 stipulates that for the trading of financial products such as foreign exchange, securities, futures, etc., the balance after the selling price minus the buying price is the turnover. Businesses with differential income should pay business tax.
According to the "Notice on Sales Services, Intangible Assets, and Real Estate" in Annex 1 of the "Notice of the Ministry of Finance and the State Administration of Taxation on Comprehensively Launching the Pilot Program of Replacing Business Tax with Value-Added Tax" (Finance and Taxation [2016] No. 36), the transfer of financial products refers to the transfer of foreign exchange. , securities, non-cargo futures and other financial product ownership business activities.
When an enterprise conducts securities transactions, the difference in transfer will be calculated as operating income, and the tax rate will be adapted to the enterprise after the business tax-to-VAT reform (3% for small-scale taxpayers, reduced to 1% during the epidemic; 6% for general taxpayers).
According to the "Announcement of the State Administration of Taxation on the Treatment of Corporate Income Tax on Income from Property Transfers and Other Incomes Obtained by Enterprises" (State Administration of Taxation Announcement No. 19, 2010), income from property transfers obtained by enterprises, whether in the form of currency or non-monetary Formal manifestations, unless otherwise specified, shall be included in the year in which the income is recognized in one go, and the corporate income tax shall be calculated and paid.
Corporate income tax is calculated based on corporate profits in the current year. If the securities investment is negative in the current year, it can only be deducted before tax in the current year and cannot be postponed to the next quarter.
2 The difference between securities trading and stock transfer
The difference between securities trading and equity transfer is that one is the transfer of listed company equity through the secondary market, and the other is the transfer of unlisted company equity (including New Third Board, Co., Ltd. , Co., Ltd.).
Transferring the equity of listed companies through the secondary market, that is, securities trading, is a business activity of the enterprise. The income is the difference between buying and selling. If it is positive, value-added tax must be paid. At the same time, gains or losses from securities transactions need to be deducted before tax in the current year and cannot be postponed to the next quarter.
When an enterprise transfers equity, it is a property transfer. The income from the equity transfer is non-operating income and does not need to pay value-added tax. The income from the share transfer needs to be deducted before tax in the current year. If a loss occurs from the share transfer (the probability is low), it can be postponed to the next quarter. At present, equity transfer is a key area of supervision by the State Administration of Taxation. Most companies avoid taxes and fees in the share transfer process by transferring equity at a par or low price.
It is particularly important to note that on September 2, 2021, the Beijing Exchange was established, and the selected companies on the New Third Board that meet the requirements were moved to the Beijing Exchange, confirming the main status of listed companies. Therefore, after the company purchased the New Third Board equity , the calculation form of taxes and fees has undergone major changes from before. Subsequent companies that reduce their shareholdings through the secondary market will need to pay value-added tax!
3 The difference between a limited company, a sole proprietorship, and a partnership
Since a sole proprietorship and a partnership are non-independent civil entities, the corporate income tax law is not applicable. Sole proprietorships and partnerships that engage in securities investment transactions pay VAT in the same way as limited companies, but their income tax calculations are different.
The income from securities investment by sole proprietorships and partnerships is subject to personal production and operation income tax according to the five-tiered personal production and operation income tax rate (5-35%). If the equity of an unlisted company is transferred, 20% of the income from property transfer must be paid. personal income tax .
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