01. Can individuals be exempted from land value-added tax when they exchange their own residential buildings?
Answer: According to Article 5 of the "Notice of the Ministry of Finance and the State Administration of Taxation on Specific Issues Concerning Land Value-added Tax" (Caishuizi [1995] No. 48), for individuals to exchange their own residential real estate, they must go through the local Upon verification by the tax authorities, land value-added tax may be exempted.
Source: Shandong Provincial Taxation Bureau
02. Can individuals be exempted from land value-added tax when transferring housing?
Answer: According to Article 3 of the "Notice of the Ministry of Finance and the State Administration of Taxation on Adjusting Tax Policies for Real Estate Transactions" (Finance and Taxation [2008] No. 137), land value-added tax is temporarily exempted from individual sales of housing.
Source: Shandong Provincial Taxation Bureau
03. After the business tax-to-VAT reform, when land value-added tax is levied, does the income from the transfer of real estate include value-added tax?
Answer: Not included. According to Article 3 of the "Notice on Issues Concerning the Basis for Calculation of Deed Tax, Real Estate Tax, Land Value-Added Tax and Personal Income Tax after the Business-to-VAT Reform" (Caishui [2016] No. 43), the income obtained by land value-added tax taxpayers from the transfer of real estate is excluding value-added tax. income.
Article 5 stipulates that if a property is exempt from value-added tax, when determining the basis for tax calculation, the transaction price, rental income, and income from the transfer of real estate will not be deducted from the value-added tax.
Article 6 stipulates that when calculating and levying land value-added tax, the taxable price or income approved by the tax authorities does not include value-added tax.
Source: Shandong Provincial Taxation Bureau
04. Can the land idle fees paid by real estate development enterprises for overdue development be deducted when calculating land value-added tax?
Answer: No. According to Article 4 of the "Notice of the State Administration of Taxation on Issues Concerning the Settlement of Land Value-Added Tax" (Guo Shui Han [2010] No. 220), land idle fees paid by real estate development enterprises for overdue development shall not be deducted.
Source: Shandong Provincial Taxation Bureau
05. Will the land value-added tax that should be paid back after the land value-added tax is settled be subject to late payment fees?
Answer: According to Article 8 of the "Notice of the State Administration of Taxation on Issues Concerning the Settlement of Land Value-Added Tax" (Guo Shui Han [2010] No. 220), after taxpayers prepay land value-added tax in accordance with regulations, they must settle the back-paid land value-added tax. , if the payment is made within the time limit specified by the competent tax authority, no late payment fee will be charged.
Source: Shandong Provincial Taxation Bureau
06. Will late payment fees be charged if the land value-added tax is not prepaid within the prescribed time limit?
Answer: According to Article 3 of the "Notice of the Ministry of Finance and the State Administration of Taxation on Several Issues Concerning Land Value-Added Tax" (Finance and Taxation [2006] No. 21), if the tax is not prepaid within the prescribed time limit, the tax shall be taxed in accordance with the "People's Republic of China" The relevant provisions of the Republic’s Tax Collection Administration Law and its implementation rules stipulate that additional late payment fees will be charged from the next day after the specified tax payment period expires.
Source: Shandong Provincial Taxation Bureau
07. How to pay land value-added tax for cooperative housing construction?
Answer: According to the second provision of the "Notice of the Ministry of Finance and the State Administration of Taxation on Specific Issues Concerning Land Value-added Tax" (Caishuizi [1995] No. 48), for one party to provide land and one party to contribute funds, the two parties will cooperate to build a house. If the houses are later divided into proportions for self-use, the land value-added tax will be temporarily exempted; if the houses are transferred after completion, the land value-added tax shall be levied.
Source: Shandong Provincial Taxation Bureau
08. When a property owner donates the property rights of his house to his immediate family members, does he pay land value-added tax?
Answer: 1. According to Article 2 of the "Interim Regulations of the People's Republic of China on Land Value Added Tax" (State Council Order No. 138), units and individuals that transfer state-owned land use rights, buildings on the ground and their attachments and obtain income, Those who are taxpayers of land value-added tax shall pay land value-added tax in accordance with these regulations.
2. According to Article 2 of the "Implementation Rules of the Interim Regulations of the People's Republic of China on Land Value-Added Tax" (Cai Fa Zi [1995] No. 6), transferring state-owned land use rights, buildings on the ground and their attachments and obtaining income are Refers to the act of transferring real estate for a fee through sale or other means. It does not include the free transfer of real estate through inheritance or gift.
3. According to Article 4 of the "Notice of the Ministry of Finance and the State Administration of Taxation on Specific Issues Concerning Land Value-Added Tax" (Caishuizi [1995] No. 48), "donations" include:
real estate owners, land use rights owners Donating house property rights and land use rights to immediate family members or persons with direct support obligations.
Source: Shandong Provincial Taxation Bureau
09. Can the deed tax paid by a real estate development enterprise when acquiring land use rights be deducted when calculating land value-added tax?
Answer: According to Article 5 of the "Notice of the State Administration of Taxation on Issues Concerning the Settlement of Land Value-Added Tax" (Guo Shui Han [2010] No. 220), the deed tax paid by a real estate development enterprise to obtain land use rights should be regarded as "according to "Relevant fees paid in accordance with unified national regulations" shall be included in the "amount paid to obtain land use rights" and deducted.
Source: Shandong Provincial Taxation Bureau
10. After the business tax to VAT reform, land VAT taxpayers accept VAT invoices obtained from construction and installation services. What are the requirements for invoice issuance?
Answer: According to Article 5 of the "Announcement of the State Administration of Taxation on Certain Provisions on the Collection and Administration of Land Value-Added Tax after the Business-to-VAT Reform" (State Administration of Taxation Announcement No. 70 of 2016), after the tax-to-VAT reform, land value-added tax taxpayers accept construction The VAT invoice obtained for installation services should be included in the remarks column of the invoice in accordance with the "Announcement of the State Administration of Taxation on Comprehensive Promotion of the Pilot Program of Replacing Business Tax with Value-Added Tax on Tax Collection Management Matters" (State Administration of Taxation Announcement No. 23, 2016) Indicate the name of the county (city, district) where the construction service occurs and the project name, otherwise it shall not be included in the land value-added tax deduction project amount .
Source: Shandong Provincial Taxation Bureau
11. Can equity transfer losses and equity investment losses in overseas companies be deducted before corporate income tax?
Answer: 1. According to the "Decision of the Standing Committee of the National People's Congress on Amending the Enterprise Income Tax Law of the People's Republic of China" (Presidential Order No. 64 of the People's Republic of China), Article 3 resident enterprises shall be responsible for their origins in China and abroad. The income is subject to corporate income tax. …Article 8 The actual and reasonable expenditures incurred by an enterprise related to the acquisition of income, including costs, fees, taxes, losses and other expenditures, are allowed to be deducted when calculating taxable income. …Article 17 When an enterprise calculates and pays corporate income tax on a consolidated basis, the losses of its overseas business entities shall not be offset against the profits of its domestic business entities.
2. According to Article 32 of the "Regulations on the Implementation of the Enterprise Income Tax Law of the People's Republic of China" (Order No. 512 of the State Council of the People's Republic of China), the losses mentioned in Article 8 of the Enterprise Income Tax Law refer to the losses incurred by the enterprise in the production and operation activities. Losses due to inventory losses, damage, scrapping of fixed assets and inventories, losses on transferred property, losses on bad debts, losses on bad debts, losses caused by force majeure factors such as natural disasters, and other losses.……
3. According to the "Notice of the Ministry of Finance and the State Administration of Taxation on Pre-tax Deduction Policies for Enterprise Asset Losses" (Finance and Taxation [2009] No. 57), the asset losses mentioned in Article 1 of this notice refer to the production and operation activities of enterprises. Asset losses that actually occur and are related to the acquisition of taxable income, including cash losses, deposit losses, bad debt losses, loan losses, equity investment losses, inventory losses, damage, scrapping, and theft losses of fixed assets and inventories, and natural disasters Losses caused by force majeure factors and other losses. …6. If an enterprise’s equity investment meets one of the following conditions, the irrecoverable equity investment confirmed after deducting the recoverable amount can be deducted as an equity investment loss when calculating taxable income: (1) The invested party shall comply with the law Declared bankrupt, closed, disbanded, revoked, or had its business license canceled or revoked in accordance with the law; (2) The investee's financial situation has seriously deteriorated, accumulated huge losses, has ceased operations for more than 3 consecutive years, and has not resumed operations and reorganization plan; (3) It does not have control over the investee, the investment period has expired or the investment period has exceeded 10 years, and the invested unit has become insolvent due to operating losses for three consecutive years; (4) The financial status of the investee It has seriously deteriorated, accumulated huge losses, and has completed liquidation or the liquidation period has exceeded 3 years; (5) Other conditions stipulated by the financial and taxation authorities of the State Council. ... 12. Asset losses incurred by an enterprise’s domestic and overseas business entities shall be accounted for separately. Losses incurred by overseas business entities due to asset losses shall not be deducted when calculating domestic taxable income.
4. According to the "Announcement of the State Administration of Taxation on the Administration of Pre-tax Deduction of Enterprise Asset Losses for Income Taxes" (State Administration of Taxation Announcement No. 25, 2011), the assets mentioned in Article 2 of these Measures refer to those owned or controlled by the enterprise. , assets related to operating and management activities, including cash, bank deposits, receivables and prepayments (including bills receivable, various types of advances, and inter-company accounts) and other monetary assets, inventories, fixed assets, and intangible assets , projects under construction, productive biological assets and other non-monetary assets, as well as debt investments and equity (equity) investments. …Article 39: Enterprise investment losses include debt investment losses and equity (equity) investment losses. …Article 41 Enterprise equity investment losses shall be confirmed based on the following relevant evidence materials: (1) Equity investment tax basis certification materials; (2) Bankruptcy announcement and bankruptcy liquidation documents of the invested enterprise; (3) Industrial and commercial administrative department Cancellation or revocation of the business license of the invested unit; (4) Documents of administrative decisions made by relevant government departments on the invested unit; (5) Legal or other supporting documents proving that the invested enterprise has terminated operations or ceased trading; (6) Invested enterprise Asset disposal plan, transaction and accounting materials; (7) Written statement confirming the investment (equity) losses signed by the legal representative, principal person in charge and financial person in charge of the enterprise; (8) Accounting data and other relevant evidence materials. ...Article 46 The following equity and creditor's rights shall not be deducted as losses before tax: (1) The debtor or guarantor has the financial ability to repay but the enterprise's creditor's rights have not been repaid on time; (2) Violation of the provisions of laws and regulations, in each case Corporate claims that have been evaded or left vacant in various forms or excuses; (3) corporate claims that have been evaded or left vacant due to administrative intervention; (4) corporate claims that have not been recovered from debtors and guarantors; (5) corporate claims that have occurred in non-operating activities; (6) Other corporate claims and equity that should not be written off.
Therefore, according to the provisions of the above documents, the equity investment losses incurred by the enterprise as specified above can be deducted when calculating taxable income according to regulations. Asset losses incurred by an enterprise's domestic and overseas business entities should be accounted for separately. Losses incurred by overseas business entities due to asset losses shall not be deducted when calculating domestic taxable income. It is recommended that you refer to the provisions of the above documents and make deductions based on the actual business differentiation. If it is difficult to define, it is recommended that you contact the competent tax authority for confirmation on specific matters.
Source: Henan Provincial Taxation Bureau
12. If there are multiple sole proprietorships under the name of the same natural person, do the operating income need to be summarized?
The same natural person has established sole proprietorships in Shandong and Henan, both of which adopt the taxable income rate collection method. The tax calculation method is as follows: tax-exclusive sales * 10% taxable income tax = taxable income, and personal business income is taxable Amount = taxable income * (5%-35%) - quick calculation deduction. Before March 31 of the following year, should we choose a tax authority in Henan or Shandong and submit Form C of personal income tax operating income, summarizing the taxable income of all enterprises * the applicable tax rate to calculate the total tax payable? If the tax is not reported and calculated in accordance with Article 1 of Guo Shui Han 2001 Document No. 84, resulting in underpayment of tax, does this constitute a violation of law? What are the specific penalties?
Answer: 1. According to the "Announcement of the State Administration of Taxation on Issues Concerning Self-Declaration of Individual Income Tax" (State Administration of Taxation Announcement No. 62 of 2018), 2. Tax declaration for business income... When a taxpayer obtains business income, Personal income tax is calculated on an annual basis. The taxpayer shall, within 15 days after the end of each month or quarter, make a prepayment declaration to the competent tax authority in the place of operation and management, and submit the "Individual Income Tax Return from Business Income (Form A)". Before March 31 of the following year in which the income is obtained, the final settlement must be made to the competent tax authority in the place where the business is conducted, and the "Individual Income Tax Return from Business Income (Form B)" must be submitted; if business income is obtained from two or more places, Choose to submit an annual summary declaration to the tax authority in charge of one of the places where the business is located, and submit the "Personal Income Tax Business Income Tax Return (Form C)".
2. According to the "Notice of the State Administration of Taxation on the Implementation Standards for the Collection of Personal Income Tax on Investors in Sole Proprietorships and Partnership Enterprises" (Guo Shui Han [2001] No. 84), 1. Regarding investors establishing two or more For the above enterprises, and all of them are sole proprietorships, the tax payable will be calculated after the end of the year. If an investor establishes two or more enterprises, and all of them are sole proprietorships, the tax payable will be settled after the end of the year. When settling the payment, the tax payable is calculated as follows: the operating income of all the enterprises invested and established is summarized as the taxable income, and the applicable tax rate is determined based on this, the tax payable on the operating income for the whole year is calculated, and then the tax payable is calculated based on each year. The operating income of each enterprise accounts for the proportion of the operating income of all enterprises, and the tax payable and back tax payable of each enterprise are calculated separately. The calculation formula is as follows: Taxable income = Σ Business income of each enterprise Tax payable = Taxable income × Tax rate - Quick calculation deductions Tax payable of the enterprise = Tax payable × Operating income of the enterprise / Σ Operation of each enterprise The amount of tax payable by the enterprise on income = the amount of tax payable by the enterprise - the amount of tax paid in advance by the enterprise.
3. According to the "Tax Collection and Administration Law of the People's Republic of China" (Presidential Order No. 49 of the People's Republic of China), Article 25 Taxpayers must determine in accordance with the provisions of laws and administrative regulations or the tax authorities in accordance with the provisions of laws and administrative regulations Handle tax returns truthfully according to the filing deadline and content, and submit tax returns, financial accounting statements and other tax information that the tax authorities require taxpayers to submit based on actual needs. …Article 27 If taxpayers or withholding agents are unable to file tax returns or submit tax withholding and remittance or collection and repayment tax reports on time, they may defer the tax declaration with the approval of the tax authorities. …Article 32 If the taxpayer fails to pay the tax within the prescribed time limit, and the withholding agent fails to pay the tax within the prescribed time limit, the tax authorities, in addition to ordering payment within a time limit, shall, starting from the date of overdue tax payment, pay the tax on a daily basis. A late payment fee of 0.05% of the overdue tax will be charged.…Article 62: Taxpayers fail to make tax returns and submit tax materials within the prescribed time limit, or the withholding agent fails to submit tax withholding and remittance, collection and repayment to the tax authorities within the prescribed time limit. If the report form and relevant information are found, the tax authorities will order it to make corrections within a time limit and may impose a fine of not more than 2,000 yuan; if the circumstances are serious, a fine of not less than 2,000 yuan but not more than 10,000 yuan may be imposed. …Article 64…If a taxpayer fails to file a tax return or fails to pay or underpays the tax payable, the tax authorities shall recover the tax and late payment fines that he or she did not pay or underpay, and shall also impose penalties for the failure to pay or underpayment. A fine of not less than 50% but not more than five times the tax.
4. According to the "Personal Income Tax Law of the People's Republic of China" (Order of the President of the People's Republic of China No. 9), Article 2 the following personal income shall be subject to personal income tax: ... (5) Business income; ... Tenth Article 2 When a taxpayer obtains business income, personal income tax shall be calculated on an annual basis. The taxpayer shall submit a tax return to the tax authorities within fifteen days after the end of each month or quarter and prepay the tax; on March 3rd of the following year in which the income is obtained, Complete the final settlement and payment before the eleventh day. …Article 20 The collection and management of personal income tax shall be carried out in accordance with the provisions of this Law and the "Tax Collection and Management Law of the People's Republic of China".
5. According to the "Tax Handling Guide" issued by the official website of the Henan Provincial Taxation Bureau of the State Administration of Taxation, 1.3.4.16 Summary annual declaration of personal income tax on income from multiple operations... [Processing Materials] 1. "Personal Income Tax Return on Business Income" (Form C)"; 2. "Personal Income Tax Reduction and Reduction Matters Report Form";...
Therefore, according to the provisions of the above documents, if business income is obtained from two or more places, it is necessary to choose to go to the tax authority in charge of one of the places where the business management is located to handle the annual tax return. Summarize the declaration and submit the "Personal Income Tax Return from Business Income (Form C)". Your unit should truthfully handle tax returns in accordance with the prescribed filing deadlines. If the taxpayer fails to pay the tax within the prescribed time limit, and the withholding agent fails to pay the tax within the prescribed time limit, the tax authorities, in addition to ordering the payment within a time limit, will also impose an additional 10,000 yuan on the overdue tax on a daily basis starting from the date of overdue tax payment. 5/5 late payment fees. If a taxpayer fails to file a tax return and submit tax materials within the prescribed time limit, or if a taxpayer fails to file a tax return or fails to pay or underpays the tax due, relevant penalties will be involved. The specific amount of the penalty will depend on the severity of the case. , the competent tax authorities have certain discretion within the prescribed penalty amount. For specific matters, it is recommended that you contact the competent tax authority for confirmation.
Source: Henan Provincial Taxation Bureau
13. How should real estate development companies handle cost invoices obtained in the year after completion and settlement?
The costs incurred by a real estate development enterprise in previous years were paid but no invoices were obtained in the current year. After the invoices are obtained in the year after completion and settlement, how can they be deducted before income tax, no more than 5 years? Is the adjustment retroactive to the year it occurs or is it deducted before tax in the year the invoice is obtained?
Answer: 1. According to Article 8 of the "Decision of the Standing Committee of the National People's Congress on Amending the Enterprise Income Tax Law of the People's Republic of China" (Presidential Order No. 64 of the People's Republic of China), the actual and reasonable activities of the enterprise related to the receipt of income Expenditures, including costs, fees, taxes, losses and other expenses, are allowed to be deducted when calculating taxable income.
2. According to the "Regulations on the Implementation of the Enterprise Income Tax Law of the People's Republic of China" (Order No. 512 of the State Council of the People's Republic of China), Article 29 The costs mentioned in Article 8 of the Enterprise Income Tax Law refer to the costs incurred by the enterprise in its production and business activities. cost of sales, cost of goods sold, operating expenses and other expenses. …Article 33 The term “other expenditures” as mentioned in Article 8 of the Enterprise Income Tax Law refers to reasonable expenditures related to production and business activities incurred by an enterprise in addition to costs, expenses, taxes and losses.……
3. According to the “Announcement of the State Administration of Taxation on the Management Measures for Issuing Pre-tax Deduction Vouchers for Enterprise Income Tax” (State Administration of Taxation Announcement No. 28, 2018), the term “pre-tax deduction voucher” as mentioned in Article 2 of these Measures refers to When an enterprise calculates its taxable income for corporate income tax, it must prove that reasonable expenditures related to the income were actually incurred and use various vouchers for pre-tax deductions. …Article 8 Pre-tax deduction vouchers are divided into internal vouchers and external vouchers according to their sources. Internal vouchers refer to the original accounting vouchers made by the enterprise for accounting of costs, expenses, losses and other expenditures. The filling and use of internal vouchers should comply with national accounting laws, regulations and other relevant provisions. External vouchers refer to the vouchers obtained from other units and individuals to prove the occurrence of expenditures when an enterprise conducts business activities and other matters, including but not limited to invoices (including paper invoices and electronic invoices), financial bills, tax payment vouchers, Payment voucher, split order, etc. …Article 13 If an enterprise should obtain but fails to obtain invoices or other external vouchers or obtains non-compliant invoices or other non-compliant external vouchers, if the expenditure is genuine and has actually occurred, it shall end the settlement period of the current year. Before, ask the other party to reissue, reissue invoices, and other external vouchers. Reissued or replaced invoices and other external vouchers that meet the regulations can be used as pre-tax deduction vouchers. …Article 15 After the final settlement and payment period, if the tax authorities discover that the enterprise has not obtained invoices or other external vouchers that it should have obtained, or that it has obtained non-compliant invoices or other non-compliant external vouchers and notified the enterprise, the enterprise shall Reissue or replace invoices and other external vouchers that meet the regulations within 60 days from the date of notification. Among them, if the other party is unable to reissue or replace invoices or other external vouchers due to special reasons, the enterprise shall provide relevant information that can prove the authenticity of its expenditures within 60 days from the date of being informed in accordance with the provisions of Article 14 of these Measures. Article 16 If an enterprise fails to reissue or replace invoices or other external vouchers that meet the regulations within the prescribed period, and fails to provide relevant materials to prove the authenticity of its expenditures in accordance with Article 14 of these Measures, the corresponding expenditures shall not be allowed. Deducted before tax in the year in which it occurs. Article 17 Except for the circumstances specified in Article 15 of these Measures, if an enterprise should have obtained invoices or other external vouchers in previous years but failed to do so, and the corresponding expenditures were not deducted before tax in that year, it shall obtain invoices or other external vouchers that meet the regulations in subsequent years. Invoices, other external vouchers or relevant materials that can prove the authenticity of the expenditures are provided in accordance with the provisions of Article 14 of these Measures. The corresponding expenditures can be retroactively deducted before tax in the year in which the expenditures are incurred, but the retroactive period shall not exceed five years.
4. According to Article 19 of the "Tax Collection Administration Law of the People's Republic of China" (Presidential Order No. 49 of the People's Republic of China), taxpayers and withholding agents shall comply with relevant laws, administrative regulations and the provisions of the State Council's financial and tax authorities. It is stipulated to set up account books, keep accounts based on legal and valid vouchers, and conduct accounting.
Therefore, according to your description, the actual and reasonable expenditures incurred by the enterprise related to obtaining income should be deducted when calculating taxable income with legal and valid vouchers; Otherwise, no deduction will be made. If the enterprise did not obtain invoices in previous years, and the corresponding expenditures were not deducted before tax in that year, if it obtains invoices that meet the regulations in subsequent years, the corresponding expenditures can be retroactively deducted before tax in the year in which the expenditures were incurred, and the retroactive period shall not exceed five years. It is recommended that you refer to the provisions of the above documents and contact the competent tax authorities for further confirmation on specific matters.
Source: Henan Provincial Taxation Bureau
14. Does a company need to pay value-added tax when it purchases accounts receivable claims, penalty interest and liquidated damages?
Our company purchased claims on accounts receivable, and the previous creditor has completed contract performance and issuance of invoices.If my company subsequently sues the debtor to obtain penalty interest and liquidated damages, does my company need to pay VAT on the penalty interest and liquidated damages?
Answer: 1. According to the "Decision of the State Council on Abolition of the Interim Regulations of the People's Republic of China on Business Tax and on Amending the Interim Regulations of the People's Republic of China on Value-Added Tax" (National Decree No. 691), Article 1 The sale or processing of goods within the territory of the People's Republic of China. Units and individuals that provide repair and replacement services (hereinafter referred to as labor services), sell services, intangible assets, real estate, and imported goods are VAT taxpayers and must pay VAT in accordance with these regulations. …Article 6 Sales volume refers to all prices and extra-price expenses collected by taxpayers for taxable sales activities, but does not include the output tax collected. ......
2. According to Article 12 of the "Implementation Rules of the Interim Regulations of the People's Republic of China on Value-Added Tax" (Order No. 50 of the Ministry of Finance and the State Administration of Taxation), the out-of-price expenses mentioned in paragraph 1 of Article 6 of the Regulations include out-of-price purchases. Handling fees, subsidies, funds, fund-raising fees, returned profits, incentive fees, liquidated damages, late payment fees, deferred payment interest, compensation, collection fees, advance payments, packaging fees, packaging rentals, reserve fees, quality fees collected by the party fees, transportation and handling fees and other extra-price charges of various natures. ...
3. According to the provisions 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), Annex 1...Article 37 sales refers to tax payment All prices and extra-price expenses obtained by a person from taxable activities, unless otherwise specified by the Ministry of Finance and the State Administration of Taxation. Extra-price expenses refer to charges of various natures collected outside the price...
Therefore, according to the provisions of the above documents, the sales amount is the entire price and extra-price expenses collected by the taxpayer for taxable sales, but does not include the sales collected Item tax amount. Among them, extra-price charges include compensation collected from the buyer outside the price and other extra-price charges of various natures. If there is any VAT taxable behavior between your company and the debtor, and the penalty interest and defaulted metals collected are out-of-price expenses specified in the document, the VAT should be stipulated. It is recommended that you refer to the above regulations and define it based on your actual business. If it is difficult to define, please contact the competent tax authority for confirmation on specific matters.
Source: Henan Provincial Taxation Bureau
15. The place of prepayment of land value-added tax, according to Article 10 of the "Interim Regulations of the People's Republic of China on Land Value-Added Tax" (State Council Order No. 138): "The taxpayer shall sign the real estate transfer contract from File a tax declaration with the competent tax authority where the real estate is located within seven days, and pay the land value-added tax within the time limit approved by the tax authority. "
This policy stipulates the tax declaration location. In practice, it is generally the same when prepaying land value-added tax. Which policy is followed by prepayment to the competent tax authority where the property is located?
Answer: 1. According to the "Interim Regulations of the People's Republic of China on Land Value Added Tax" (State Council Order No. 138), Article 10 taxpayers shall file tax returns with the competent tax authority in the location of the real estate within seven days from the date of signing the real estate transfer contract. , and pay land value-added tax within the time limit approved by the tax authorities.
2. According to the "Implementation Rules of the Interim Regulations of the People's Republic of China on Land Value Added Tax" (Cai Fa Zi [1995] No. 6), Article 16 The income obtained by the taxpayer from the transfer of real estate before the project is fully completed and settled, due to the cost determination involved If the land value-added tax cannot be calculated based on the project or other reasons, the land value-added tax can be levied in advance and liquidated after the project is fully completed and settled, and any excess will be refunded. Specific measures shall be formulated by the local taxation bureaus of each province, autonomous region, and municipality directly under the Central Government based on local conditions. Article 17 The location of the real estate mentioned in Article 10 of the Regulations refers to the place where the real estate is located. If a taxpayer transfers real estate located in two or more regions, he shall declare tax separately according to the location of the real estate.
3. According to Article 14 of the "Notice of the Ministry of Finance and the State Administration of Taxation on Specific Issues Concerning Land Value-added Tax" (Caishuizi [1995] No. 48), the issue of whether to declare tax on the income obtained from the pre-sale of real estate is based on According to the detailed regulations, land value-added tax can be levied in advance on the income derived from the transfer of real estate by taxpayers before the project is fully completed and settled. Specific measures shall be formulated by the local taxation bureaus of each province, autonomous region, and municipality directly under the Central Government based on local conditions. Therefore, if the local tax authority stipulates that the local tax authority stipulates the prepayment of land value-added tax on the income obtained from the pre-sale of real estate by taxpayers, the taxpayer should go to the competent tax authority to file a tax declaration and prepay according to the prescribed proportion. After the final settlement is completed, the excess will be refunded. If the local tax authority stipulates that land value-added tax is not levied in advance, the land value-added tax must be registered or filed with the tax authority before the income is obtained.
Therefore, according to the provisions of the above documents, pre-collection of land value-added tax is due to the transfer of real estate before the project is fully completed and settled, and should be handled with the competent tax authority where the real estate is located.
Source: Henan Provincial Taxation Bureau
16. Invoice seller information. A company received a general value-added tax invoice issued by a self-employed person. Because the self-employed person did not have an opening bank and account number, the invoicing party (seller) account bank and account information were blank. , can it be recorded as a compliant invoice? Or should you reject it and ask the supplier to re-issue an invoice with the issuing bank and account number and fill in the self-employed account number?
1. According to the "Decision of the State Council on Amending the Invoice Management Measures of the People's Republic of China" (Order No. 587 of the State Council of the People's Republic of China), Article 19 Units and individuals that sell goods, provide services, and engage in other business activities shall not When collecting money for business operations, the payee shall issue an invoice to the payee; under special circumstances, the payee shall issue an invoice to the payee. Article 20 All units and individuals engaged in production and business activities shall obtain invoices from the payee when making payments when purchasing goods, receiving services, or engaging in other business activities. When obtaining an invoice, no request is made to change the product name or amount. Article 21 Invoices that do not meet the regulations shall not be used as financial reimbursement vouchers, and any unit or individual has the right to reject them. Article 22 Invoices shall be issued in accordance with the prescribed time limit, sequence and columns, all copies shall be issued truthfully at one time, and shall be stamped with a special invoice seal. ……
2. According to the "Implementation Rules of the Invoice Management Measures of the People's Republic of China" (State Administration of Taxation Order No. 25), Article 28 When issuing invoices, units and individuals must fill in the invoices in the order of numbers. The items are complete, the content is true, the handwriting is clear, all copies are printed at once, the contents are completely consistent, and the invoice copy and deduction copy are stamped with special invoice seals.
3. According to the "Announcement of the State Administration of Taxation on Issues Concerning the Issuance of Value-Added Tax Invoices" (State Administration of Taxation Announcement No. 16, 2017), 1. Starting from July 1, 2017, if the purchaser is an enterprise, the value-added claim shall be claimed When issuing a general VAT invoice, the seller should provide the taxpayer identification number or unified social credit code; when the seller issues a general VAT invoice, the buyer's taxpayer identification number should be filled in the "Purchasing Party Taxpayer Identification Number" column. or unified social credit code. Invoices that do not meet the regulations shall not be used as tax vouchers. ......
4. According to Article 8 of the "Notice of the State Administration of Taxation on Further Strengthening the Management of Ordinary Invoices" (Guo Shui Fa [2008] No. 80), (2)... During routine inspections, it is found that taxpayers use non-compliance with regulations Invoices, especially those without the full name of the payer, shall not be allowed to taxpayers for pre-tax deductions, tax deductions, export tax rebates and financial reimbursements.
5. According to the "Announcement of the State Administration of Taxation on the Management Measures for the Issuance of Pre-tax Deduction Vouchers for Enterprise Income Tax" (State Administration of Taxation Announcement No. 28 of 2018), Article 12 Enterprises obtain privately printed, forged, altered, or invalidated certificates. , the issuer illegally obtains, falsely issues, fills in non-standard invoices and other non-compliant invoices (hereinafter referred to as "non-compliant invoices"), and obtains other external vouchers that do not comply with national laws, regulations and other relevant provisions (hereinafter referred to as "non-compliant invoices") "other external vouchers") and shall not be used as pre-tax deduction vouchers.
Therefore, according to the provisions of the above documents and the requirements of the Invoice Management Measures, the invoice items should be filled in completely. However, when issuing ordinary VAT invoices, if the purchaser is an enterprise, the enterprise name and taxpayer identification number must be filled in. It is recommended to fill in the bank account number, address and phone number completely. However, if it is impossible to fill it in, it is currently not within the mandatory limit and will not affect the validity of the invoice. You can contact the competent tax authority for confirmation on specific matters.
Source: Henan Provincial Taxation Bureau
17. Special invoice stamp, VAT special stamp, general invoice stamp, can it only be stamped on the lower right corner of the invoice? Are invoices stamped in other blank spaces valid?
The stamp is not clear. Is it possible to add a clear stamp in the blank space?
1. According to the "Decision of the State Council on Amending the Invoice Management Measures of the People's Republic of China" (Order No. 587 of the State Council of the People's Republic of China), invoices that do not meet the regulations in Article 21 shall not be used as financial reimbursement vouchers for any unit or individual. The right to refuse. Article 22 Invoices shall be issued truthfully in accordance with the prescribed time limit, sequence and columns, all at one time, and shall be stamped with a special invoice seal. ……
2. According to the "Implementation Rules of the Invoice Management Measures of the People's Republic of China" (State Administration of Taxation Order No. 25), Article 28 When issuing invoices, units and individuals must fill in the invoices in the order of numbers. The items are complete, the content is true, the handwriting is clear, all copies are printed at once, the contents are completely consistent, and the invoice copy and deduction copy are stamped with special invoice seals.
3. According to the provisions of the "Notice of the Department of Goods and Services Tax of the State Administration of Taxation on Promoting and Guidance on the Use of Value-Added Tax Invoices" (Tax General Notice [2017] No. 127), Attachment: Chapter 2 of the Guidelines for Issuing Value-Added Tax Invoices Basic Provisions for Issuing Value-Added Tax Invoices Section 1 Basic Provisions for Issuing Invoices by Taxpayers... 2. When units and individuals that sell goods, provide services, or engage in other business activities receive payments for external business operations, the payee shall issue an invoice to the payer. ;Under special circumstances, the payer shall issue an invoice to the payee. All units and individuals engaged in production and business activities shall obtain invoices from the payee when making payments when purchasing goods, receiving services, or engaging in other business activities. When obtaining an invoice, no request is made to change the product name or amount. ……5. When issuing invoices, units and individuals must fill in the invoices according to the order of numbers, fill in the items completely, the content is true, the handwriting is clear, all pages are printed at once, the content is completely consistent, and the invoice page and the deduction page must be added. Stamp the invoice with a special stamp. ... 12. Special value-added tax invoices should be issued in accordance with the following requirements: (1) The items are complete and consistent with the actual transaction; (2) The writing is clear, and no lines or wrong formats are allowed; (3) The invoice copy and the deduction copy are stamped Special seal for invoices; (4) Issuing according to the time when the value-added tax liability occurs. The buyer has the right to reject special VAT invoices that do not meet the above requirements. ... 15. In the month when a taxpayer issues a special value-added tax invoice, sales returns or invoicing errors occur, and if the returned invoice copy and deduction copy meet the conditions for invalidation, they will be treated as invalid; errors are found during issuance. Yes, it can be voided immediately.... 16. After a taxpayer issues a special value-added tax invoice, sales returns, invoicing errors, taxable services are suspended, etc. but the invoice invalidation conditions are not met, or part of the sales is returned or sales discounts occur, it is necessary to issue a special VAT invoice. Special value-added tax invoices with red letters shall be handled as follows: ...
4. According to the "Notice of the State Administration of Taxation on Issues Concerning the Special Rectification Action against the Production and Sale of Fake Invoices and Illegal Issuance of Invoices" (Guo Shui Fa [2008] No. 40 ) Article 3 stipulates that...invoices and other vouchers that do not meet the regulations, including false invoices and illegal agency invoices, shall not be used for pre-tax deductions, export tax rebates, or tax deductions.
5. According to Article 19 of the "Tax Collection Administration Law of the People's Republic of China" (Presidential Order No. 49 of the People's Republic of China), taxpayers and withholding agents shall comply with relevant laws, administrative regulations and the provisions of the State Council's financial and tax authorities. It stipulates the setting up of account books, accounting and accounting based on legal and valid vouchers.
Therefore, according to the provisions of the above-mentioned documents, invoices must be issued truthfully in accordance with the prescribed time limit, order, and columns, all at once, and stamped with a special invoice seal. Upon verification, if the special VAT invoice is stamped repeatedly because the special stamp on the invoice is unclear, the recipient has the right to request the issuer to re-issue it. For specific relevant matters, you may contact the competent tax authority for further confirmation.
Source: Henan Provincial Taxation Bureau
18. Our company is a private enterprise engaged in real estate development and operation. Our company won several pieces of real estate development land listed for sale by the government. Our company invested more than 500,000 yuan in two of the plots of land (Plot A and Plot B) to provide water, electricity, and access roads, and invested more than 4 million yuan in planning and design (the planning and design involved Plot A, Plot B, and C Plot, Plot D). No ground attachments have been constructed on any of the four plots of land. Subsequently, our company transferred the land use rights of these four pieces of land to other real estate development companies. During the land value-added tax settlement, our company and the tax bureau had a big dispute over the calculation scope of the additional 20% deduction for land value-added tax:
1. Taxation bureau’s handling opinions
Taxation bureau policy basis: National Taxation Letter (1995) No. 110 "Land Value-Added Tax Publicity Outline" "6. What should be paid attention to when specifically calculating the value-added amount?" Item 2 stipulates: (2) If funds are invested to transfer raw land into mature land after obtaining land use rights, the calculation of the When adding value, it is allowed to deduct the land price paid when acquiring the land use rights, relevant fees paid, and the cost required to develop the land plus 20% of the development cost and taxes paid during the transfer process. This provision is to encourage investors to invest more funds in real estate development.
The scope of the tax bureau’s allowance for an additional 20% deduction for land value-added tax settlement is: it only includes two expenditures of more than 500,000 yuan for three links and more than 4 million yuan for planning and design fees. No additional deduction is allowed for the land price paid when acquiring land use rights.
2. Our company’s policy basis
"New Local Tax Business Guide" published by China Taxation Press in July 2003 and prepared by the Local Taxation Department of the State Administration of Taxation, page 28, 2.3.3.2.4 Only land development without housing construction Deduction items:
For those who only carry out land development (such as "three connections and one leveling", etc.) after obtaining the land use rights without carrying out the construction of houses, that is, transfer the land use rights again, only allowed when calculating the value added Deduction:
1. The amount paid when acquiring land use rights;
2. Relevant fees paid in accordance with unified national regulations;
3. The cost and expenses of developing land;
4. Taxes related to the transfer of land use rights;
5. The sum of the land price paid when acquiring the land use rights and the cost of developing the land is subject to an additional 20% deduction.
The actual situation of our company is: after obtained the land use rights, it only carried out land development without construction of houses, that is, the land use rights were transferred out. If you comply with the provisions of 2.3.3.2.4 on page 28 of the "New Local Tax Business Guide" for only carrying out land development without house construction, you can enjoy "5. The land price paid when obtaining the land use rights and the cost of developing the land" The sum shall be subject to a 20% deduction.”
The tax bureau believes: : Our company is a real estate development enterprise, not a land (complete land) development enterprise, not a land development enterprise with a government background or a state-owned enterprise, and the business scope does not include "land (complete land) development" content projects. Therefore, the provisions on deduction items for land development only but not house construction on page 28 of the "New Local Tax Business Guide" do not apply.
Our company believes: : Although our company’s business scope does not include “land (land) development” content projects, our company’s business scope has clear “various engineering construction activities (projects that require approval according to law, after Business activities can only be carried out after approval from relevant departments. Specific business projects shall be subject to approval documents or licenses from relevant departments." Our company believes that "various engineering construction activities" has a broad meaning, including land development and construction activities. After our company has substantially developed the land, it has transferred the land use rights without constructing houses, which is in line with the deduction items of 2.3.3.2.4 on page 28 of the "New Local Tax Business Guide" for only developing land without constructing houses. prescribed circumstances.
I sincerely ask the policy authority leaders of the provincial bureau to safeguard the interests of enterprises and support their development. How can we make enterprises pay reasonable taxes and understand taxes?
Answer: 1. According to Article 6 of the "Interim Regulations of the People's Republic of China on Land Value-Added Tax" (State Council Order No. 138), the deduction items for calculating the value-added amount are: (1) The amount paid to obtain the land use right; (2) The costs and expenses of developing land; (3) The costs and expenses of new houses and supporting facilities, or the assessed prices of old houses and buildings; (4) Taxes related to the transfer of real estate; (5) Other deduction items stipulated by the Ministry of Finance .
2. According to Article 7 of the "Implementation Rules of the Interim Regulations of the People's Republic of China on Land Value-Added Tax" (Cai Fa Zi [1995] No. 6), the deduction items for calculating the value-added amount listed in Article 6 of the regulations are specifically: (1) ) The amount paid to obtain land use rights refers to the land price paid by taxpayers to obtain land use rights and related fees paid in accordance with unified national regulations. (2) The cost of developing land and building new houses and supporting facilities (hereinafter referred to as real estate development costs) refers to the actual costs incurred by taxpayers in real estate development projects (hereinafter referred to as housing development costs), including land acquisition and demolition compensation fees, preliminary Engineering fees, construction and installation engineering fees, infrastructure fees, public supporting facilities fees, and development indirect costs. Compensation fees for land acquisition and demolition include land acquisition fees, farmland occupation taxes, labor resettlement fees, net expenditures related to compensation for the demolition of above-ground and underground attachments, and housing expenditures for resettlement and relocation, etc. Preliminary engineering costs include planning, design, project feasibility study, hydrology, geology, survey, surveying and mapping, "three connections and one leveling" and other expenditures. … (6) According to the provisions of Article 6 (5) of the Regulations, taxpayers engaged in real estate development may receive an additional 20% deduction from the sum of the amounts calculated in accordance with the provisions of (1) and (2) of this article.
3. According to the "Notice of the State Administration of Taxation on Issuing the Publicity Outline of Land Value-Added Tax" (Guo Shui Han Fa [1995] No. 110), Article 5... (6) Super deduction. For taxpayers engaged in real estate development, a 20% deduction can be added to the sum of the amount paid to obtain land use rights and the cost of real estate development.Article 6 What should be paid attention to when specifically calculating the value-added amount? When specifically calculating the value-added amount, the following situations must be distinguished for processing: (1) For land or real estate use rights that are transferred without development after being acquired, the value-added shall be calculated. When deducting the amount, only the land price paid when acquiring the land use rights, relevant fees paid, and taxes paid during the transfer process are allowed to be deducted. The purpose of this provision is mainly to curb the behavior of "speculation" buying and "speculation" selling land. (2) For those who invest funds after obtaining the land use rights to transfer "raw land" into "cooked land", when calculating the added value, the land price paid when obtaining the land use rights, relevant fees paid, and the cost of developing the land are allowed to be deducted. The required cost plus 20% of the development cost and taxes paid during the transfer process. This provision is to encourage investors to invest more funds in real estate development. (3) For those who carry out real estate development and construction after obtaining the land use rights, when calculating the value added, the land price and related expenses paid when obtaining the land use rights, the cost of developing the land and new buildings and supporting facilities and the prescribed expenses are allowed to be deducted. , taxes related to the transfer of real estate, and an additional 20% deduction is allowed. ……
4. According to the 38th provisions of the "Notice of the State Administration of Taxation on Issuing the Standards for Land Value-Added Tax Liquidation and Assurance" (Guo Shui Fa [2007] No. 132), the review of super deduction items stipulated by the state shall include the following Content: (1) For those who obtain the right to use land (whether raw land or cultivated land) and then transfer it without any form of development, review whether the amount of deduction items is calculated in accordance with tax regulations, and verify whether there is any violation of tax regulations for additional deductions. . (2) For those who only carry out land development (such as "three connections and one leveling", etc.) after obtaining the land use rights and transfer the land use rights without building houses, review whether the deduction item amount is calculated in accordance with tax regulations and whether the deduction amount is calculated according to the tax regulations when the land use rights are obtained. The sum of the land price paid and the cost of developing the land is used to calculate the super deduction.
Therefore, according to the provisions of the above documents, the deduction items for calculating the value-added include: the amount paid to obtain the land use rights; the cost and expenses of developing the land, etc. Among them, the cost of developing land and building new houses and supporting facilities (hereinafter referred to as real estate development costs) includes land acquisition and demolition compensation fees, preliminary engineering fees, construction and installation engineering fees, infrastructure fees, public supporting facilities fees, and development indirect costs. Among them, the preliminary engineering costs include planning, design, project feasibility study and hydrology, geology, survey, surveying and mapping, "three connections and one leveling" and other expenditures. It is recommended that you refer to the above provisions to determine whether the transfer is "converting "raw land" into "cooked land". If so, when calculating the value added, the land price paid when obtaining the land use rights, relevant fees paid, and the costs of developing the land are allowed to be deducted. The cost plus 20% of the development cost and the taxes paid during the transfer process are required. If it is difficult to define, it is recommended to bring relevant information to the competent tax authority for further confirmation.
Source: Henan Provincial Taxation Bureau
19. Scope of physical assets
Finance and Taxation [ Document No. 36 of 2016 stipulates that "in the process of asset reorganization, all or part of the physical assets and their associated claims, liabilities and labor force are transferred to Other units and individuals, involving the transfer of real estate and land use rights. "
Do the physical assets mentioned in the article include land use rights?
According to the provisions 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), Annex 1... Article 1 Units and individuals that sell services, intangible assets or real estate (hereinafter referred to as taxable activities) within the territory of the People's Republic of China (hereinafter referred to as the territory) are VAT taxpayers and shall pay VAT in accordance with these Measures and shall not pay business tax....Attachment: Notes on Sales Services, Intangible Assets, Real Estate...2. Sales of Intangible Assets...Natural resource use rights, including land use rights, sea area use rights, exploration rights, mining rights, water abstraction rights and other natural resource use rights. ...Annex 2: ...1. ...(2) Items not subject to value-added tax. ……5. In the process of asset reorganization, all or part of the physical assets and their associated claims, liabilities and labor are transferred to other units and individuals through mergers, divisions, sales, replacements, etc., and the real estate involved , transfer of land use rights. ...
Therefore, according to the provisions of the above documents, land use rights are intangible assets, and no value-added tax is levied on the transfer of land use rights during the asset reorganization process.
Source: Henan Provincial Taxation Bureau
20. Is the interest income from structured deposits subject to value-added tax?
The "Corporate Financial Structured Deposit Agreement" signed between an enterprise and a bank stipulates: Should value-added tax be paid on interest income from structured deposits with guaranteed capital and floating income? Or is it comparable to deposit interest income and does not pay VAT?
Answer: 1. According to 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): Article 1: Within the territory of the People’s Republic of China (hereinafter referred to as the territory) Units and individuals that sell services, intangible assets or real estate (hereinafter referred to as taxable activities) are VAT taxpayers and shall pay VAT in accordance with these Measures and shall not pay business tax. …Article 15 Value-added tax rate: (1) If a taxpayer engages in taxable behavior, except for the provisions in items (2), (3), and (4) of this article, the tax rate is 6%. … Article 16 The value-added tax collection rate is 3%, unless otherwise specified by the Ministry of Finance and the State Administration of Taxation. Article 1 of the "Notes on Sales Services, Intangible Assets, and Real Estate" 1. Sales services... (5) Financial services. Financial services refer to the business activities of operating financial insurance. Including loan services, direct fee financial services, insurance services and financial product transfers. 1. Loan services. Loan refers to the business activity of lending funds to others to obtain interest income. Income from various occupations and borrowing funds, including interest (guaranteed income, remuneration, fund occupation fees, compensation, etc.) during the holding period of financial products (including maturity), credit card overdraft interest income, and interest on financial products purchased for resale. Income, interest income from margin financing and securities lending, as well as interest and interest-based income from financing sale-leaseback, bill advance, penalty interest, bill discounting, on-lending and other businesses, shall be subject to value-added tax in accordance with loan services. ……
2. According to Article 1 of the “Notice of the Ministry of Finance and the State Administration of Taxation on Clarifying Value-Added Tax Policies for Financial Real Estate Development, Education Auxiliary Services and Other Services” (Finance and Taxation [2016] 140), the “Notes on Sales Services, Intangible Assets, and Real Estate” ( The term "capital-guaranteed income, remuneration, capital occupation fees, and compensation" as mentioned in point 1 of Article 1, Item (5) of Caishui [2016] No. 36 refers to the investment income that is clearly promised in the contract to be able to fully recover the principal upon maturity. . The above-mentioned non-principal-guaranteed income obtained during the holding period of financial products (including maturity) does not belong to interest or income of an interest nature, and no value-added tax is levied.
3. According to the "Notice of the Ministry of Finance and the State Administration of Taxation on Tax Policies Concerning Support for the Financing of Small and Micro Enterprises" (Finance and Taxation [2017] No. 77), in order to further increase support for small and micro enterprises, we will promote the alleviation of financing difficulties and expensive financing. , the relevant tax policies are now notified as follows: 1. From December 1, 2017 to December 31, 2019, the interest income obtained by financial institutions from issuing small loans to farmers, small enterprises, micro enterprises and individual industrial and commercial households, Exempt from VAT. …Article 1 of the "Notice of the Ministry of Finance and the State Administration of Taxation on Continuing Relevant Tax Policies to Support Rural Financial Development" (Caishui [2017] No. 44) is accordingly abolished. 3.... The term "small enterprises and micro enterprises" as mentioned in this notice refers to small enterprises and micro enterprises that comply with the "Classification Standards for Small and Medium-sized Enterprises" (Ministry of Industry and Information Technology [2011] No. 300).Among them,...
4. According to the "Notice of the Ministry of Finance and the State Administration of Taxation on the Value-Added Tax Exemption Policy for Interest Income from Loans to Small and Micro Enterprises by Financial Institutions" (Finance and Taxation [2018] No. 91), 1. From September 1, 2018 to On December 31, 2020, interest income derived from small loans issued by financial institutions to small enterprises, micro-enterprises and individual industrial and commercial households will be exempt from value-added tax. Financial institutions can choose one of the following two methods to apply for tax exemption: ... 2. The financial institutions mentioned in this notice refer to those established with the approval of the People's Bank of China and the China Banking and Insurance Regulatory Commission and have passed the "two increases and two controls" assessment by the regulatory authorities in the previous year. institutions (the list of institutions that passed the assessment in 2018 shall be based on achieving the goals of "two increases and two controls" in the first half of 2018), as well as development banks and policy banks, foreign banks and non-profit banks established with the approval of the People's Bank of China, the China Banking and Insurance Regulatory Commission, and the China Securities Regulatory Commission. Banking financial institutions. "Two increases and two controls" refers to... 3. The term "small enterprises and micro enterprises" as mentioned in this notice refers to small enterprises and micro enterprises that comply with the "Classification Standards for Small and Medium-sized Enterprises" (Ministry of Industry and Information Technology [2011] No. 300). Among them,... 4. The term "small loans" as mentioned in this notice refers to loans to small enterprises, micro-enterprises or individual industrial and commercial households with a single-household credit limit of less than 10 million yuan (including the principal amount); if there is no credit line, it refers to a single-household loan contract A loan with a loan balance of less than 10 million yuan (including the principal amount).
Therefore, according to the provisions of the above documents, interest income (guaranteed income, remuneration, capital occupation fees, compensation, etc.) during the holding period of financial products (including maturity), credit card overdraft interest income, interest income from financial products purchased for resale, and financing The interest income collected from securities lending, as well as the interest and interest-related income derived from financing sale-leaseback, bill advance, penalty interest, bill discounting, on-lending and other businesses, shall be subject to VAT as loan services. "Capital-guaranteed income, remuneration, capital occupation fees, and compensation" refer to the investment income that is clearly promised in the contract to be able to fully recover the principal upon maturity. The above-mentioned non-principal-guaranteed income obtained during the holding period of financial products (including maturity) does not belong to interest or income of an interest nature, and no value-added tax is levied. It is recommended that you refer to the above documents and make a specific judgment based on the actual situation.
Source: Henan Provincial Taxation Bureau
21. Value-added tax issues during corporate reorganization
1. Is asset transfer considered corporate reorganization?
2. "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" (Caishui [2016] No. 36) Annex 2 Provisions on Matters Relevant to the Pilot Program of Replacing Business Tax with Value-Added Tax, Article 1, Paragraph 2, Item 5 It stipulates that during the asset reorganization process, all or part of the physical assets and their associated claims, liabilities and labor will be transferred to other units and individuals through mergers, divisions, sales, replacements, etc., and the real estate, land use involved, etc. The transfer of rights is not subject to value-added tax.
If the enterprise has no business since its establishment, has no debts and claims related to the assets, and has no labor related to the assets, then during the reorganization process, if all or part of the assets are transferred, can the company enjoy the policy of not collecting value-added tax?
Answer: 1. According to Article 1 of the "Notice of the Ministry of Finance and the State Administration of Taxation on Several Issues Concerning the Treatment of Corporate Income Tax on Enterprise Reorganization Business" (Finance and Taxation [2009] No. 59), the term "enterprise reorganization" as mentioned in this notice refers to the day-to-day operations of an enterprise. Transactions that involve major changes in the legal structure or economic structure outside of activities, including changes in corporate legal form, debt restructuring, equity acquisitions, asset acquisitions, mergers, spin-offs, etc. … (2) Debt restructuring refers to the matter where the creditor makes concessions on the debtor’s debts in accordance with the written agreement reached between the creditor and the debtor or the court ruling when the debtor encounters financial difficulties.… (5) Merger means that one or more enterprises (hereinafter referred to as the merged enterprise) transfer all their assets and liabilities to another existing or newly established enterprise (hereinafter referred to as the merged enterprise), and the shareholders of the merged enterprise exchange Equity or non-equity payment of merging enterprises to realize the legal merger of two or more enterprises. ……
2. According to Article 2 of the “Announcement of the State Administration of Taxation on Issuing the Measures for the Administration of Enterprise Income Tax on Enterprise Reorganization Business” (State Administration of Taxation Announcement No. 4, 2010), the term “enterprise reorganization business” as mentioned in these Measures refers to Various types of reorganizations such as changes in the legal form of enterprises, debt restructuring, equity acquisitions, asset acquisitions, mergers, and spin-offs as stipulated in Article 1 of the "Notice".
3. According to the provisions 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), Annex 1...Article 1 is within the territory of the People's Republic of China (hereinafter referred to as the territory) Units and individuals that sell services, intangible assets or real estate (hereinafter referred to as taxable activities) are VAT taxpayers and shall pay VAT in accordance with these Measures and shall not pay business tax. ...Article 14 The following situations are deemed to be sales of services, intangible assets or real estate: ...(2) An unit or individual transfers intangible assets or real estate to other units or individuals for free, but it is used for public welfare or for the general public. except. Attachment 2: ...1, ...(2) Items not subject to value-added tax. ……5. In the process of asset reorganization, all or part of the physical assets and their associated claims, liabilities and labor are transferred to other units and individuals through mergers, divisions, sales, replacements, etc., and the real estate involved , transfer of land use rights.
Therefore, according to the provisions of the above documents, corporate restructuring refers to transactions that significantly change the legal structure or economic structure of an enterprise outside of its daily operating activities, including changes in the legal form of the enterprise, debt restructuring, equity acquisition, asset acquisition, merger, split, etc. . If your unit's asset transfer does not fall within the aforementioned circumstances, it does not constitute corporate reorganization. The non-levy of value-added tax in point 5 of Article 1, Item 2, Annex 2 of Finance and Taxation [2016] No. 36 is for corporate restructuring business. If you do not meet this provision, you will not be able to enjoy it. It is recommended that you refer to the above regulations and define them based on actual business conditions. If it is difficult to define, you can bring relevant information to the competent tax authority for further confirmation.
Source: Henan Provincial Taxation Bureau
22. Will contracts signed before the Deed Tax Law take effect on September 1st be subject to the current policy?
After the Deed Tax Law comes into effect on September 1, 2021, if the house purchase contract signed before September 1, 2021 is the third home of the family, the tax paid now will be based on the previous 4% or the current policy of 3% ? What is the basis? If it is auctioned by a court, is the contract signing date based on the "Auction Transaction Confirmation" or the date of some other document?
Answer: 1. According to the "Deed Tax Law of the People's Republic of China" (Presidential Order No. 52 of the People's Republic of China), Article 1 When the ownership of land and houses is transferred within the territory of the People's Republic of China, the units and individuals who bear the deed tax are Taxpayers shall pay deed tax in accordance with the provisions of this Law. ...Article 3 The deed tax rate is 3% to 5%. The specific applicable tax rate for deed tax shall be proposed by the people's government of the province, autonomous region, or municipality directly under the Central Government within the tax rate range specified in the preceding paragraph, and reported to the Standing Committee of the People's Congress at the same level for decision, and reported to the Standing Committee of the National People's Congress and the State Council for filing. Provinces, autonomous regions, and municipalities directly under the Central Government may determine differential tax rates for the ownership transfer of different entities, different regions, and different types of housing in accordance with the procedures stipulated in the preceding paragraph. …Article 9 The time when the deed tax liability arises is the day when the taxpayer signs the land or house ownership transfer contract, or the day when the taxpayer obtains other certificates in the nature of the land or house ownership transfer contract. Article 10 Taxpayers shall declare and pay deed tax before completing the land and house ownership registration procedures in accordance with the law. …Article 16 This Law will come into effect on September 1, 2021.……
2. According to the "Decision of the Standing Committee of the Henan Provincial People's Congress on the Applicable Tax Rates for Deed Taxes in Henan Province and Other Matters" (Announcement No. 65 of the Standing Committee of the 13th People's Congress of Henan Province), 1. Housing rights in Henan Province The tax rate for property transfer deeds is 3%, and the tax rate for other house and land ownership transfers is 4%. … 3. This decision will come into effect on September 1, 2021.
3. According to the provisions of the "Announcement of the Ministry of Finance and the State Administration of Taxation on the Implementation Standards for Certain Matters Concerning the Implementation of the Deed Tax Law" (Announcement No. 23 of the Ministry of Finance and the State Administration of Taxation 2021), 4. Specific circumstances regarding the time when tax obligations occur (1) Due to the people's If the ownership of land or houses is transferred due to effective legal documents from courts or arbitration committees or supervisory documents issued by supervisory agencies, the tax liability will occur on the day when the legal documents, etc. become effective. ...
Therefore, the time when the tax liability for deed tax occurs is the day when the taxpayer signs the land or house ownership transfer contract, or the day when the taxpayer obtains other certificates with the nature of land or house ownership transfer contract. 1. When you purchase a third home, if the tax liability occurs before September 1, 2021, the applicable tax rate is 4%. If the tax liability occurs after September 1, 2021, the applicable tax rate is 3%. 2. If the ownership of land or houses is transferred due to the effective legal documents of the people's court or arbitration committee or the supervision documents issued by the supervisory authority, the time when the tax liability occurs is the day when the legal documents, etc. become effective. It is recommended that you refer to the above documents and make your judgment based on the actual situation. You can contact the competent tax authority for verification and confirmation of specific matters.
Source: Henan Provincial Taxation Bureau
23. Does a partnership need to pay corporate income tax when it distributes its external investment income to its legal partners?
Our company is a legal partner of a limited partnership. The partnership distributes the dividends from the invested units to our company in proportion. Does our company need to pay corporate income tax on the dividends and dividends received?
Answer: 1. According to Article 26 of the "Decision of the Standing Committee of the National People's Congress on Amending the Enterprise Income Tax Law of the People's Republic of China" (Presidential Order No. 64 of the People's Republic of China), the following income of an enterprise is tax-free: ( 2) Dividends, dividends and other equity investment income between qualified resident enterprises;...
2. According to Article 83 of the "Regulations on the Implementation of the Enterprise Income Tax Law of the People's Republic of China" (Order No. 512 of the State Council of the People's Republic of China) It is stipulated that the equity investment income such as dividends and bonuses between qualified resident enterprises as mentioned in Article 26 (2) of the Enterprise Income Tax Law refers to the investment income obtained by resident enterprises from direct investment in other resident enterprises. Dividends, dividends and other equity investment income referred to in Items (2) and (3) of Article 26 of the Enterprise Income Tax Law do not include those obtained from continuously holding stocks publicly issued and listed for circulation by resident enterprises for less than 12 months. Investment income.
3. The "Notice of the Ministry of Finance and the State Administration of Taxation on Income Tax Issues for Partners of Partnership Enterprises" (Finance and Taxation [2008] No. 159) stipulates that Article 2 of a partnership enterprise shall regard each partner as a taxpayer. Partners in a partnership are natural persons and pay personal income tax; partners are legal persons and other organizations and pay corporate income tax.
Therefore, according to the provisions of the above documents, if the partner is a legal person enterprise, the legal person enterprise will receive investment dividends. Since it is not direct investment income, it does not constitute tax-free income, and you need to pay corporate income tax.
Source: Henan Provincial Taxation Bureau
24. Article 2 of (Guo Shui Fa [2006] No. 144) stipulates that when calculating and levying personal income tax on donated real estate by individuals, it shall not be assessed and collected, and must be collected strictly in accordance with the provisions of the tax law.Does this article stipulate that taxes paid when receiving a property as a gift shall not be assessed and levied, or is it a provision when transferring a property as a gift?
Answer: According to the "Notice of the State Administration of Taxation on Issues Concerning Strengthening the Tax Administration of Free Donations of Real Estate by Individuals in Real Estate Transactions" (Guo Shui Fa [2006] No. 144): 2. Regarding Strengthening the Tax Administration on the External Sales of Donated Real Estate by Individuals
( 2) Regarding the issue of strengthening the tax management of personal income tax on the external sales of donated real estate by individuals.
When calculating and levying personal income tax on donated real estate, the collection shall not be determined and must be collected strictly in accordance with the provisions of the tax law.
Source: Hebei Provincial Taxation Bureau
25. When issuing ordinary invoices, do I need to fill in the unified credit code when issuing ordinary invoices to schools?
Answer: According to the "Announcement of the State Administration of Taxation on Issues Concerning the Issuance of Value-Added Tax Invoices" (State Administration of Taxation Announcement No. 16 of 2017): 1. Starting from July 1, 2017, if the purchaser is an enterprise, the value-added claim shall be claimed When issuing a general VAT invoice, the seller should provide the taxpayer identification number or unified social credit code; when the seller issues a general VAT invoice, the buyer's taxpayer identification number should be filled in the "Purchasing Party Taxpayer Identification Number" column. or unified social credit code. Invoices that do not meet the regulations shall not be used as tax vouchers.
The enterprises referred to in this announcement include companies, unincorporated legal persons, corporate branches, sole proprietorships, partnerships and other enterprises.
According to the "Hebei Provincial State Taxation Bureau's Answers to Policy Issues Concerning the Comprehensive Promotion of Business-to-VAT Replacement with VAT (Part 1)": 5. How to fill in the information of the purchaser of a general VAT invoice?
When issuing a general VAT invoice, when the purchaser When the taxpayer is a taxpayer who has gone through tax registration, the buyer's information column should be filled in completely, and no items should be left out; when the buyer is an administrative institution that has not gone through tax registration, the buyer's name and address should be filled in, and other items are not required. When the purchaser is another individual, the name of the purchaser should be filled in, and other items can be left blank.
Source: Hebei Provincial Taxation Bureau
26. What is the time for the VAT recognition of income by a real estate enterprise?
What is the time for the VAT recognition of income by a real estate enterprise? If it is according to the agreement? If the delivery time is confirmed, what should I do if the delivery is delayed?
Answer: According to 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):
Article 45 The time when the VAT tax liability and withholding obligation occurs is:
(1) The day when the taxpayer takes the taxable action and receives the sales payment or obtains the receipt for claiming the sales payment; if the invoice is issued first, it is the day when the invoice is issued.
, refers to the day when the taxpayer receives the payment during or after the sale of services, intangible assets, or real estate.
refers to the payment date determined in the written contract; the written contract is not signed or the payment date is not determined in the written contract. , is the day when the transfer of services or intangible assets is completed or the day when the ownership of the real estate is changed.
According to the "Hebei Provincial State Taxation Bureau's Answers to Policy Issues Concerning the Comprehensive Promotion of the Business-to-VAT Reform (Part 2)":
9. About. The issue of when tax liability occurs when a real estate development enterprise sells self-developed real estate
Article 45 of the "Implementation Measures for the Pilot Program of Replacing Business Tax with Value-Added Tax" stipulates that the time when the VAT liability arises is: "The taxpayer engages in taxable behavior and receives the sales payment. Or the day when the receipt for the sales payment is obtained; if the invoice is issued first, it will be the day when the invoice is issued. ”
It can be seen that the taxable behavior of taxpayers is the prerequisite for the occurrence of tax obligations.When a real estate company sells real estate, the taxable act occurs on the day when the real estate company delivers the real estate to the buyer.
The delivery time shall be subject to the delivery time stipulated in the "Commercial Housing Sales Contract"; if the actual delivery time is earlier than the time stipulated in the contract, the actual delivery time shall prevail.
Source: Hebei Provincial Taxation Bureau
27.1% tax rate special agricultural product value-added tax invoice deduction issue,
My unit is a general taxpayer for catering enterprises. Can the 1% special agricultural product invoice obtained by small-scale taxpayers be eligible for the agricultural product policy 9 % Calculation of deductible input tax?
Answer: According to the provisions of the "Notice of the Ministry of Finance and the State Administration of Taxation on Policies Concerning the Consolidation of Value-Added Tax Rates" (Finance and Taxation [2017] No. 37):
2. When taxpayers purchase agricultural products, the input tax shall be deducted according to the following provisions:
(1) In addition to the provisions of item (2) of this article, when a taxpayer purchases agricultural products and obtains a special VAT invoice or a special customs import VAT payment note issued by a general taxpayer, the taxpayer shall use the special VAT invoice or the customs import VAT payment certificate. The VAT amount indicated on the special payment note is the input tax amount; if a special VAT invoice is obtained from a small-scale taxpayer who pays VAT calculated and paid according to the simplified tax calculation method at a 3% collection rate, the VAT amount indicated on the special VAT invoice shall be The input tax is calculated based on the amount and a deduction rate of 11%; if a sales invoice or purchase invoice for agricultural products is obtained (issued), the input tax is calculated based on the purchase price of agricultural products indicated on the sales invoice or purchase invoice for agricultural products and a deduction rate of 11%.
According to the provisions of the "Notice of the Ministry of Finance and the State Administration of Taxation on Adjusting the Value-Added Tax Rate" (Finance and Taxation [2018] No. 32):
2. If taxpayers purchase agricultural products and the original 11% deduction rate is applicable, the deduction rate will be adjusted to 10%. ...
6. This notice will be implemented from May 1, 2018.
According to the provisions of the "Announcement of the Ministry of Finance, State Administration of Taxation and the General Administration of Customs on Relevant Policies for Deepening Value-Added Tax Reform" (Announcement No. 39 of the Ministry of Finance, State Administration of Taxation and the General Administration of Customs of 2019):
2. When taxpayers purchase agricultural products, the original application 10 % deduction rate, the deduction rate is adjusted to 9%. When taxpayers purchase agricultural products used in the production or commissioned processing of goods subject to a tax rate of 13%, the input tax shall be calculated at a deduction rate of 10%.
According to the provisions of the "Decision of the State Council on Repealing the Interim Regulations of the People's Republic of China on Business Tax and Amending the Interim Regulations of the People's Republic of China on Value-Added Tax" (National Order No. 691):
Article 10 The input tax on the following items shall not be derived from sales. Deductions from item tax:
(1) Purchased goods, labor, services, intangible assets and real estate used for tax items calculated under the simplified tax calculation method, items exempt from value-added tax, collective welfare or personal consumption;
(2) Non-tax deductions Purchased goods with normal losses, and related labor and transportation services;
(3) Purchased goods (excluding fixed assets), labor and transportation services consumed by abnormal losses of products and finished products;
(4) Other items specified by the State Council.
According to the provisions of the above documents, taxpayers who purchase agricultural products and obtain special VAT invoices from small-scale taxpayers who pay VAT at a 3% tax rate shall use the amount indicated on the special VAT invoice and a 9% deduction. The input tax is calculated at a tax rate of 10%; if a taxpayer purchases agricultural products for production or processing of goods with a tax rate of 13%, the input tax is calculated at a deduction rate of 10%. For example, if a small-scale taxpayer selling agricultural products chooses to give up the VAT reduction policy and issue a special VAT invoice with a 3% collection rate, your company has obtained a special VAT invoice with a 3% collection rate issued by the small-scale taxpayer, which is not used for Within the non-deductible range, the input tax deduction can be calculated according to the above provisions.
Source: Hebei Provincial Taxation Bureau
28. In the process of real estate development, in the planned resettlement and construction plots, specially built and constructed houses are used to resettle the demolished aborigines, and the value-added tax is included in the value-added tax Aspects:
1. Does VAT require deemed sales?
2. If the VAT is regarded as sales, can the same amount be used as the land cost and the difference be deducted when calculating the VAT sales?
3. If the difference cannot be deducted, will it cause a contradiction that there are output items but no corresponding input items?
Under the original business tax, the "Reply of the State Administration of Taxation on the Collection of Business Tax on Individual Sales of Demolition Compensation Housing" (Guo Shui Han [2007] No. 768) stipulates: "1. Regarding the method of obtaining demolition compensation housing
Real Estate Development Company's treatment of demolished households When the house property rights are exchanged, the essence is the exchange of economic benefits in the form of real estate ownership. The real estate development company transfers the ownership of the real estate to the relocated households and obtains corresponding economic benefits. According to the relevant provisions of the current business tax. , business tax should be paid according to the tax item of "sale of real estate"; the demolished household has obtained the ownership of another real estate from the real estate development company with its original real estate ownership. This behavior does not belong to non-purchase through donation, inheritance, divorce property division, etc. "
According to the above documents, real estate development companies should pay business tax according to regulations before replacing business tax with value-added tax. After the tax-to-VAT reform, the nature of this business as “the exchange of economic benefits in the form of real estate ownership” has not changed. Therefore, real estate development enterprises should pay value-added tax in accordance with regulations. At the same time, if they can obtain a special value-added tax invoice issued (issued on behalf of) the person being demolished, they can deduct the input tax in accordance with regulations and should not be recognized as demolition costs in calculating value-added tax sales. Deducted on time.
In summary, please contact the local competent tax authorities directly, and they will make a realistic determination based on relevant policies and regulations and the actual operating conditions of your organization.
Source: Hubei Provincial Taxation Bureau
29. Does the community owners committee need to issue an invoice when receiving the property share?
I am the owners committee of the community. The property management company usually earns a certain amount of revenue from advertising temporary parking spaces in the community and building elevator rentals. According to the property management law, 70% of the public income needs to be shared with the community owners committee. Now the owners committee receives the property Do I need to issue an invoice for the share?
1. If invoicing is required, how can a non-enterprise owner committee apply for invoicing?
2. If invoicing is not required, what documents will the property company use to enter the account?
Answer: According to the "Decision of the State Council on Amending the Measures for the Administration of Invoices of the People's Republic of China" (Order No. 587 of the State Council of the People's Republic of China): "Article 19 of the Measures for the Administration of Invoices of the People's Republic of China is to sell goods, provide services and engage in other activities. When units and individuals with business activities collect payments for external business operations, the payee shall issue an invoice to the payee; under special circumstances, the payee shall issue an invoice to the payee." The question states that if the owners committee rents the temporary parking spaces in the community and the advertising spaces in the building elevators to the property management company, the property management company will then sublease them. The rental income obtained by the owners' association shall be invoiced to the property management company.
According to the "Decision of the State Council on Amending the Measures for the Administration of Invoices of the People's Republic of China" (Order No. 587 of the State Council of the People's Republic of China): "Article 16 of the Measures for the Administration of Invoices of the People's Republic of China" Units and individuals who need to temporarily use invoices can With written proof of purchasing and selling goods, providing or accepting services, and engaging in other business activities, and the identity certificate of the person in charge, directly apply to the tax authorities at the place of business for payment of taxes in accordance with tax laws and administrative regulations. Taxes are collected first and then invoices are issued."
The owners' committee can apply for temporary tax registration. After completing the temporary tax registration, it can apply for the issuance of invoices.
Source: Xiamen Taxation Bureau
30. Can the electronic ticket itinerary be used as an entry invoice?
The air transport electronic ticket obtained from the booking company Can the passenger ticket itinerary (produced by the State Administration of Taxation) be used as a reimbursement document and transportation invoice?
Answer: According to the "Notice of the State Administration of Taxation and the Civil Aviation Administration of China on the Issuance of Air Transport Electronic Ticket Itinerary Management Measures (Interim)" (State Taxation Administration) [2008] No. 54): "Measures for the Administration of Electronic Ticket Itineraries for Air Transport (Interim). Article 3 The itinerary referred to in these Measures serves as a payment voucher or reimbursement voucher for passengers to purchase electronic tickets, and also has the function of reminding passengers of their itinerary. .
Article 31 Itinerary that does not meet the regulations shall not be used as the original voucher for accounting. Any unit or individual has the right to reject it and report it to the civil aviation regional administration bureau of the invoicing unit and its dispatched agencies or the relevant tax authorities in the jurisdiction. Report to the agency. ”
Source: Liaoning Provincial Taxation Bureau
31. Can the stamp tax be deducted from the land value-added tax settlement?
A certain real estate company now has a project that requires land value-added tax settlement. Can the stamp tax paid during the transfer of the house be deducted from the land value-added tax settlement? Deduction?
According to the provisions of the "Notice of the Ministry of Finance and the State Administration of Taxation on Specific Issues Concerning Land Value-Added Tax" (Caishuizi [1995] No. 48): "9. Regarding the issue of deducting stamp duty paid when calculating the value-added amount
in the detailed rules The stamp duty that is allowed to be deducted refers to the stamp duty paid when transferring real estate. In accordance with the relevant provisions of the financial system of construction and real estate development enterprises, the stamp duty paid by real estate development enterprises is included in management expenses and has been deducted accordingly. Other land value-added tax payers are allowed to deduct the stamp duty paid at the time of transfer when calculating land value-added tax. "
Source: Liaoning Provincial Taxation Bureau
32. The definition of advertising fees and business promotion fees is not clearly defined in documents. Is it up to the judgment of the tax bureau?
According to the "Regulations on the Implementation of the Enterprise Income Tax Law of the People's Republic of China" (Order of the State Council of the People's Republic of China [2007] No. 512) stipulates: “Article 44: Eligible advertising and business promotion expenses incurred by an enterprise shall not exceed 15% of the current year’s sales (business) revenue, unless otherwise specified by the financial and taxation authorities of the State Council. Deductions are allowed; the excess amount will be allowed to be carried forward as deductions in subsequent tax years. ”
The definition of advertising fees and business promotion fees is not clearly defined in documents. Is it up to the tax bureau to judge?
Answer: According to the provisions of Article 44 of the "Regulations on the Implementation of the Enterprise Income Tax Law of the People's Republic of China" (Order No. 512 of the State Council of the People's Republic of China) : "Unless otherwise stipulated by the financial and taxation authorities of the State Council, the eligible advertising and business promotion expenses incurred by the enterprise shall not exceed 15% of the sales (operating) income of the current year, and shall be allowed to be deducted; the excess shall be allowed to be deducted in the future. Carryover deductions during the tax year. "It is recommended that you refer to relevant accounting standards to truthfully collect "advertising fees" and "business promotion fees". If you have difficulties with the specific determination standards, you can also directly contact the competent tax authorities.
Source: Jiangxi Provincial Taxation Bureau
33. Is drilling in the geological exploration industry a modern service industry or drilling (well drilling) in the construction industry?
Answer: According to 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" (Caishui [2016] No. 36) attached with the "Notes on Sales Services, Intangible Assets, and Real Estate", other construction services refer to Various engineering operation services other than the above-listed engineering operations, such as drilling (well drilling), demolition of buildings or structures, land leveling, landscaping, dredging (excluding channel dredging), building translation, scaffolding, blasting, mining Engineering operations such as perforation, stripping and cleaning of surface attachments (including rock layers, soil layers, sand layers, etc.).
R&D and technical services, including R&D services, contract energy management services, engineering survey and exploration services, and professional technical services.
Engineering survey and exploration services refer to business activities that conduct on-site investigation of terrain, geological structures, and underground resource reserves before and after mining and engineering construction.
It is recommended that you refer to the above regulations based on the actual situation, and contact the local tax authorities with relevant information for specific definitions.
Source: Inner Mongolia Autonomous Region Taxation Bureau
34. The tax item name issued by the special value-added tax invoice is inaccurate, but the tax rate is correct. Can it be recorded and deducted?
Our company received special value-added tax invoices issued by Party B's unit. One of them issued a special value-added tax invoice with a tax rate of 13% and the tax item was "Construction Services-Engineering Services". The tax item issued was wrong. The actual tax item should be "Power Electronic Components*" "Power Distribution Cabinet"; another special value-added tax invoice with a tax rate of 6% was issued for "Living Services - Case Site Service Fees". The tax item was issued incorrectly. The actual tax item should be "Enterprise Management Services - Case Site Service Fees". The tax rate and amount of these two invoices are correct, consistent with the actual business and the signed contract. Both suppliers have paid taxes according to the invoice tax rate. Can our company deduct these two invoices?
Answer: When taxpayers issue special value-added tax invoices, they should correctly select the tax classification code for goods and services. Invoices that do not meet the regulations cannot be used as valid tax vouchers. Taxpayers have the right to reject them and ask the other party to reissue them.
Source: Anhui Provincial Taxation Bureau
35. The stamp tax payment time for this batch of registered capital is paid. Our company's registered capital is paid in batches. The capital that is first received will be paid in stamp tax in the next month, and then divided into installments. Is the stamp duty on the capital amount received in the account paid in January of the following year?
Answer: According to the "Notice of the State Administration of Taxation on Stamp Tax Issues on Capital Account Books" (Guo Shui Fa [1994] No. 25) "1. After the production and operation unit implements the "Two Provisions", the stamp tax calculation basis for its "account book recording funds" Changed to the total amount of "paid-in capital" and "capital reserves"
2. After the enterprise implements the "two rules" and activates new account books, the total amount of its "paid-in capital" and "capital reserves" If the amount is greater than the original stamped capital, the additional partial subsidy stamp will be taxed according to the actual amount of the "paid-in capital" and "capital reserve" accounts recorded in the newly established account books. decal; if the total annual funds in the future increase from the total decaled funds, the additional portion will be calculated and paid stamp duty within January 15 of the following year.
Source: Dalian Taxation Bureau
36. Regarding the issue of additional corporate income tax deductions for disabled people
There is a disabled person in the unit. Due to the degree of disability, he is identified as unfit to work on the job, and it is currently unsuitable to terminate the labor relationship. The unit has monthly A basic salary is paid. Can this part of the basic salary be 100% super deducted when declaring corporate income tax?
Answer: According to Article 96 of the "Regulations on the Implementation of the Enterprise Income Tax Law of the People's Republic of China" (Order No. 512 of the State Council of the People's Republic of China): "Enterprises place disabled persons as referred to in Item (2) of Article 30 of the Enterprise Income Tax Law" The super deduction of wages paid means that when an enterprise arranges for disabled persons, on the basis of the actual deductions from the wages paid to disabled employees, the additional deduction shall be based on 100% of the wages paid to disabled employees. The relevant provisions of the "Law of the People's Republic of China on the Protection of Disabled Persons" "
According to the "Notice of the Ministry of Finance and the State Administration of Taxation on Preferential Enterprise Income Tax Policies Regarding the Employment of Disabled Persons" (Caishui [2009] No. 70): "1. Enterprise placement. For disabled persons, on the basis of actual deductions from the wages paid to disabled employees, 100% of the wages paid to disabled employees can be deducted in addition when calculating taxable income.
The wages paid to disabled employees by the enterprise shall be included in the calculation. When making a prepayment declaration of corporate income tax, the deduction is allowed to be calculated based on the facts; when making the annual declaration and final settlement of corporate income tax at the end of the year, the super deduction shall be calculated in accordance with the provisions of paragraph 1 of this article. "
Source: Heilongjiang Provincial Taxation Bureau.
37. How to re-issue the originally issued business tax invoice?
Our company is a real estate development company. A house payment invoice issued in December 2013 is a business tax invoice. Now the content needs to be changed, but the amount remains unchanged. How should I re-issue a general VAT invoice? The main tax control system is no longer able to redden the original business tax invoice.
answer; According to the "Announcement of the State Administration of Taxation on Clarifying Certain Value-Added Tax Collection and Administration Issues in Sino-Foreign Cooperative School-running" (State Administration of Taxation Announcement No. 42, 2018): "7. Taxpayers' business tax-related matters that occurred before May 1, 2016 For tax business, including businesses that have already declared and paid business tax or paid back business tax, if they need to issue additional invoices, they can issue general VAT invoices. Taxpayers should keep the relevant information in full for future reference. "
The main situations that require additional invoices are:
(1) The business tax has been declared but no invoice has been issued;
(2) The business tax has been declared and the invoice has been issued. In case of sales returns or discounts, incorrect invoicing, suspension of taxable services, etc., a red invoice or a new invoice needs to be issued. For invoices;
(3) The business tax has been paid back but no invoice has been issued.
According to the "Announcement of the State Administration of Taxation on Several Collection and Management Issues in the Pilot Program of Replacing Business Tax with VAT" (State Administration of Taxation Announcement No. 53, 2016), Article 9, Paragraph 11: "..."State Administration of Taxation on Comprehensive Promotion of Business Tax "Announcement on Tax Collection and Management Matters in the Pilot Program of Substituting Value-Added Tax" (State Administration of Taxation Announcement No. 23 of 2016). The classification codes in the attachment "Goods and Services Tax Classification and Coding (Trial)" are adjusted as follows:
...
( 11) Add 6 "Non-taxable items where sales have not occurred", which is used when taxpayers receive payments but no sales of goods, taxable services, services, intangible assets or real estate have occurred.
"Non-taxable items where no sales have occurred." Under "Taxation Items"...603 "Business tax has been declared and paid but the invoice has not been invoiced but the invoice has been reissued".
uses the code of "non-taxable items without sales", the invoice tax rate column should be filled with "non-taxable", and value-added invoices are not allowed. Special tax invoice."
Source: Jiangsu Provincial Taxation Bureau
38. Interest on shareholder operating loans
Shareholders provide mortgages to banks to obtain operating loans for the company to use. The interest is deducted from the shareholder's personal card every month. Can this interest be deducted before corporate income tax? Do shareholders need to issue invoices to enterprises? If invoices are issued, do shareholders have to pay value-added tax and personal income tax?
Answer: Question 1. According to the "Enterprise Income Tax Law of the People's Republic of China": "Article 8 The actual occurrence and acquisition of the enterprise Reasonable income-related expenses, including costs, fees, taxes, losses and other expenses, are allowed to be deducted when calculating taxable income. "
According to the "Regulations on the Implementation of the Enterprise Income Tax Law of the People's Republic of China" (Order No. 512 of the State Council of the People's Republic of China): "Article 27 Relevant expenditures referred to in Article 8 of the Enterprise Income Tax Law refer to those directly related to the acquisition of income. expenditures. The term “reasonable expenditures” as mentioned in Article 8 of the Enterprise Income Tax Law refers to necessary and normal expenditures that are in compliance with the routine of production and business activities and should be included in the current profits and losses or the cost of relevant assets. "
According to the "Notice of the State Administration of Taxation on the Pre-tax Deduction of Corporate Income Tax on Interest Expenditures of Enterprises Borrowing from Natural Persons" (Guo Shuihan [2009] No. 777): "Enterprises borrow money from shareholders or other natural persons related to the enterprise. Interest payments shall be made in accordance with Article 46 of the Enterprise Income Tax Law of the People's Republic of China (hereinafter referred to as the Tax Law) and the Notice of the Ministry of Finance and the State Administration of Taxation on Tax Policy Issues Concerning the Pre-tax Deduction Standards for Interest Expenditures of Related Parties of Enterprises (Finance and Taxation [2008] No. 121) to calculate the corporate income tax deduction. "
Therefore, the interest expenses actually paid by the enterprise to shareholders can be deducted before corporate income tax if they meet the relevant conditions.
Question 2. According to the "Announcement of the State Administration of Taxation on the Management Measures for the Issuance of Pre-tax Deduction Vouchers for Corporate Income Tax" (State Taxation State Administration Announcement No. 28 of 2018) stipulates: "Article 9 If the expenditure items incurred by an enterprise within the country are VAT taxable items (hereinafter referred to as "taxable items"), the other party shall be a VAT taxpayer who has gone through tax registration. The expenditures shall be in the form of invoices (including invoices issued by the tax authorities in accordance with regulations) as pre-tax deduction vouchers; if the other party is a unit that does not need to apply for tax registration according to law or an individual engaged in small-scale sporadic business, the expenditures shall be in the form of invoices issued by the tax authorities. Alternatively, the payment voucher and internal voucher can be used as a pre-tax deduction voucher. The payment voucher should state the name of the receiving unit, personal name and ID number, expenditure items, payment amount and other relevant information. The criterion for judging small sporadic business operations is that the sales volume of an individual's taxable business operations does not exceed the threshold stipulated in relevant VAT policies. ”
Therefore, the interest paid by the enterprise on borrowing money from shareholders should be based on the invoices or receipts and internal vouchers issued by the tax authorities as pre-tax deduction vouchers for corporate income tax. When issuing ordinary VAT invoices, it generally involves VAT, city Maintenance and construction tax, education surcharge, local education surcharge, water conservancy construction fund, personal income tax and stamp duty and other related taxes and fees
Source: Shaanxi Provincial Taxation Bureau
39. Non-property companies lease rent, and also sell water, electricity, etc. to leasing companies. , can the leasing, water and electricity be billed according to the proportion of enterprise management services?
Non-property companies (similar to entrepreneurial centers, leasing small offices) rent houses, and at the same time sell water, electricity, etc. to leasing companies. Can the leasing, electricity, etc. be billed as a proportion? The overall billing amount for water and electricity is based on the proportion of enterprise management services? The unit prices for water, electricity and rent are separately agreed in the contract between the two parties.
Answer: According to the provisions of Article 3 of the "Interim Regulations of the People's Republic of China on Value-Added Tax" (State Council Order No. 538). : “Taxpayers who concurrently operate projects with different tax rates should calculate the sales of items with different tax rates separately; if the sales are not calculated separately, the higher tax rate shall apply."At the same time, according to 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" (Caishui [2016] No. 36) document Annex 1 "Implementation Measures for the Pilot Program of Replacing Business Tax with Value-Added Tax": "Thirty-ninth Article 1 If a taxpayer concurrently engages in the sale of goods, labor services, services, intangible assets or real estate and is subject to different tax rates or levy rates, the sales volume to which different tax rates or levy rates are applicable shall be calculated separately; if no separate calculation is made, the higher tax rate shall be applied. …The content specified in the attachment to this notice will be implemented from May 1, 2016, unless otherwise specified. "Therefore, if you concurrently engage in real estate leasing services and the sale of water and electricity, you should separately calculate the sales to which different tax rates or levy rates apply, and issue value-added tax invoices according to the applicable different tax rates or levy rates; otherwise, you need to start from the higher tax rate." Calculate and pay VAT at applicable tax rate and issue VAT invoice
Source: Shaanxi Provincial Taxation Bureau
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