Question 1: Can fiscal fund income be treated as non-taxable income for corporate income tax?
answer:
1. Article 7 of the "Enterprise Income Tax Law" stipulates that the following income in the total income is non-taxable income: (1) Financial appropriations; (2) Administrative charges and government fees collected in accordance with the law and included in financial management Fund; (3) Other non-taxable income stipulated by the State Council.
2. The "Regulations for the Implementation of the Enterprise Income Tax Law" stipulates:
Article 26 of the "Regulations for the Implementation of the Enterprise Income Tax Law" stipulates that the fiscal appropriation referred to in Article 7, Item (1) of the Enterprise Income Tax Law refers to the provisions of the People's Government at all levels to include Fiscal funds allocated by public institutions, social groups and other organizations under budget management, unless otherwise specified by the State Council and the financial and taxation authorities of the State Council. The term “administrative charges” as mentioned in Item 2 of Article 7 of the Enterprise Income Tax Law refers to the charges that are approved in accordance with laws, regulations and other relevant provisions and in accordance with the procedures prescribed by the State Council, when implementing social public administration, and when providing specific services to citizens, legal persons or other organizations. In the process of public services, fees are collected from specific objects and included in financial management. The term "government funds" as mentioned in Article 7, Item (2) of the Enterprise Income Tax Law refers to the fiscal funds for special purposes collected by enterprises on behalf of the government in accordance with laws, administrative regulations and other relevant provisions. The term "other non-taxable income stipulated by the State Council" as mentioned in Item 3 of Article 7 of the Enterprise Income Tax Law refers to the fiscal funds obtained by enterprises for special purposes specified by the finance and taxation authorities of the State Council and approved by the State Council.
3. "Notice of the Ministry of Finance and the State Administration of Taxation on Corporate Income Tax Policy Issues Concerning Administrative Charges on Fiscal Funds and Government Funds" (Caishui [2008] No. 151) stipulates:
All types of fiscal funds obtained by enterprises, except those belonging to the state Investments and capital that require the return of principal after use shall be included in the total income of the enterprise for the year. Fiscal funds obtained by enterprises for special purposes specified by the finance and tax authorities of the State Council and approved by the State Council are allowed to be treated as non-taxable income and deducted from the total income when calculating taxable income.
The term “fiscal funds” as mentioned in this article refers to the financial subsidies, subsidies, loan interest discounts and other types of special financial funds obtained by the enterprise from the government and its relevant departments, including direct reduction and exemption of value-added tax and immediate refund and advance payment. Various taxes that are collected and refunded, or collected first and then refunded, but do not include export tax refunds obtained by enterprises in accordance with regulations; the so-called state investment refers to the state's investment in enterprises as an investor and the corresponding increase in paid-in capital of enterprises in accordance with relevant regulations ( equity) direct investment.
4. "Notice of the Ministry of Finance and the State Administration of Taxation on the Treatment of Enterprise Income Tax on Special-Purpose Fiscal Funds" (Finance and Taxation [2011] No. 70) stipulates:
Applications obtained by enterprises from the financial departments and other departments of the people's governments at or above the county level Fiscal funds included in the total income can be treated as non-taxable income and deducted from the total income when calculating the taxable income if the following conditions are met simultaneously: (1) The enterprise can provide funds for special purposes. Documents; (2) The financial department or other government departments that allocate funds have special fund management methods or specific management requirements for the funds; (3) The enterprise separately accounts for the funds and the expenditures incurred with the funds.
If an enterprise obtains fiscal capital income that meets the above provisions, it can be treated as non-taxable income for corporate income tax.
Question 2: Are promotional items treated as sales accounting?
A general taxpayer enterprise purchases promotional items and obtains a general VAT invoice with a tax-included amount of 4,175 yuan. The promotional items are given as a gift with the sale of the goods and are treated as sales. The debit amount included in the sales expense = 4175+4175*0.13 (deemed as sales) output tax), is this correct?
answer:
According to the relevant VAT regulations, if an enterprise gives away purchased goods to others "for free", it must be treated as a sale and pay VAT.
According to the description, promotional items are given away with the sale of goods, which is somewhat similar to "bundled sales" or "buy one, get one free". Therefore, they are not "free" gifts at all, and do not need to be regarded as sales in legal terms.
However, according to the "Notice of the State Administration of Taxation on Issuing the Provisions on Several Specific Issues of Value-Added Tax" (Guo Shui Fa [1993] No. 154), taxpayers sell goods through discounts. If the sales volume and discount amount are on the same sheet, If separately noted on the invoice, value-added tax can be levied on the discounted sales volume; if the discount amount is separately invoiced, the discount amount cannot be deducted from the sales volume regardless of how it is handled financially.
At the same time, the "Notice of the State Administration of Taxation on the Issue of Deducting Discounts from Value-Added Tax Taxable Sales" (Guo Shuihan [2010] No. 56) once again made additional explanations: "The State Administration of Taxation issued the "Notice on Several Specific Issues of Value-Added Tax". Item (2) of Article 2 of "Notice on Provisions" (Guo Shui Fa [1993] No. 154) stipulates: "If a taxpayer uses discounts to sell goods, if the sales volume and the discount amount are stated separately on the same invoice, the taxpayer may VAT is levied on sales volume after discounts.”
Therefore, you only need to issue the gifted promotional items and the originally sold goods on the same invoice, and then issue the equivalent discount amount of the promotional items on the same invoice at the same time, so as to avoid paying more VAT.
Article 3 of the "Notice of the State Administration of Taxation on Several Issues Concerning the Recognition of Corporate Income Tax Revenue" (Guo Shui Han [2008] No. 875) stipulates: If an enterprise sells its own goods in a combination of buy one, get one free, etc., it does not constitute a donation and should be treated as a donation. The total sales amount is apportioned and recognized as sales revenue for each item in proportion to the fair value of each item.
At the same time, according to the new revenue standards, if an enterprise expressly promises to give away promotional items, it actually constitutes a separate performance obligation, and the sales price also needs to be allocated between the two performance obligations. There is no essential difference between the treatment under the new income standards and the provisions of Guo Shui Han [2008] No. 875.
In summary, accounting entries:
Debit: bank deposits, etc.
Credit: Main business income - xx commodities
Main business income - xx promotional products
Taxes payable - Value-added tax payable (output tax)
At the same time, the carry-over cost:
Debit: Main business cost
Loan: Inventory - xx goods
Inventory - xx promotional items
Question 3: Under what circumstances do raw materials need to be deemed to be sold or transferred out?
Use the company's own production If the raw materials are used for movable property, will it be regarded as a sale? Should it be transferred out? If the company's self-produced raw materials are used for real estate, will it be regarded as a sale? Should it be transferred out? If the purchased raw materials are used for movable property, will it be regarded as a sale? Same as sales? Should it be transferred out? If the purchased raw materials are used for real estate, will it be regarded as a sale? Should it be transferred out?
Answer:
's question involves several questions, and the value-added tax does not need to be regarded as a sale.
If it is used for items for which the input tax cannot be deducted, such as for simple tax calculation, value-added tax exemption, collective welfare, etc., the input tax cannot be deducted for the purchased goods, and the input tax must be deducted for the purchased goods.
Question 4: If it is self-produced and used for production management, does it need to be regarded as a sale?
If it is self-produced and used for production management, does it need to be regarded as a sale?
For example: a car manufacturer uses self-produced cars for administrative offices. 1. Should VAT be regarded as sales? 2. Should consumption tax be regarded as sales? 3. Should income tax be regarded as sales? 4. Should income be recognized in accounting? Please explain the policy basis.
answer:
1. Value-added tax does not need to be regarded as sales.
Article 4 of the "Implementation Rules of the Interim Regulations on Value-Added Tax" The following behaviors of units or individual industrial and commercial households are deemed to be sales of goods:
(1) Delivering goods to other units or individuals for sale on a commission basis ;
(2) Sales of goods on consignment;
(3) Taxpayers who have more than two institutions and implement unified accounting, transfer goods from one institution to other institutions for sales, but the relevant institutions are located in the same county (city) Except;
(4) Use self-produced or entrusted processing of goods for non-VAT taxable items;
(5) Use self-produced or entrusted processing of goods for collective welfare or personal consumption;
(6) Use self-produced or entrusted processing of goods for collective welfare or personal consumption;
(6) Use self-produced or entrusted processing of goods for non-VAT taxable items; , commissioned processing or purchased goods as investments, provided to other units or individual industrial and commercial households;
(7) distribute self-produced, commissioned processed or purchased goods to shareholders or investors;
(8) distribute self-produced, commissioned processed or purchased goods to shareholders or investors;
(8) distribute self-produced, commissioned processed or purchased goods to shareholders or investors; The goods entrusted for processing or purchased are given to other units or individuals free of charge.
The use of self-produced cars for corporate administrative offices does not fall under any of the above provisions, so it does not require VAT and does not need to be regarded as sales.
2. Consumption tax needs to be treated as sales
Article 4 of the "Interim Regulations on National Consumption Tax" Taxable consumer goods produced by taxpayers shall be taxed when the taxpayer sells them. Taxable consumer goods produced by taxpayers for their own use shall not be taxed if they are used for the continuous production of taxable consumer goods; if they are used for other purposes, tax shall be paid when they are transferred for use.
If a self-produced car is used for administrative offices, it falls under the above-mentioned "use for other purposes, and tax will be paid when it is transferred for use."
3. Corporate income tax does not need to be regarded as sales.
"State Administration of Taxation's Income Tax Treatment of Enterprise Disposal of Assets" Article 1 of "Notice on Issues" (Guo Shui Han [2008] No. 828) stipulates that if an enterprise disposes of assets under the following circumstances, except for transferring the assets overseas, since the ownership of the assets does not change in form or substance, it can As an internally disposed asset, it is not regarded as sales recognition revenue, and the tax basis of the relevant assets continues to be calculated.
(1) Use the asset to produce, manufacture, and process another product;
(2) Change the shape, structure or performance of the asset;
(3) Change the use of the asset (such as converting a self-built commercial house to self-use or operation);
(4) Transfer of assets between the head office and its branches;
(5) A mixture of two or more of the above situations;
(6) Other uses that do not change the ownership of assets.
uses its self-produced car for administrative purposes, which falls within the "(6) other uses that do not change the ownership of the asset" as specified above, and therefore does not need to be regarded as a sale.
4. Accounting does not recognize revenue
Article 2 of "Accounting Standards for Business Enterprises No. 14 - Revenue (2017)" stipulates: Revenue refers to the income generated by an enterprise in its daily activities that will lead to an increase in the owner's equity and that is related to the owner's equity. The total inflow of economic benefits unrelated to the invested capital.
Question 5: Is self-produced clothing used as work clothes deemed to be sold?
Is self-produced clothing used as work clothes deemed to be sold? How to account for it? What is the difference between deemed sales for VAT and deemed sales for income tax?
answer:
needs to make a judgment based on the nature of the "work clothes" in the question and the actual situation.
If "work uniforms" do not constitute collective welfare or personal consumption, neither value-added tax nor corporate income tax will be regarded as sales. For example, the company stipulates that employees must dress uniformly during work, and the "work uniforms" issued by the company are required by the company. Clothing to wear.
If the goods are in the name of "work clothes" but actually constitute collective welfare or personal consumption, both value-added tax and corporate income tax must be regarded as sales.
Since this issue is often used by some enterprises as one of the "planning" means in practice, tax audits also pay more attention to this issue, and there are many disputes between the tax bureau and enterprises on this issue. If a company wants to avoid deemed sales, it needs to have reasonable business reasons and supporting materials, and should not treat tax officials as "fools".
Question 6: Is the company issuing points to you to purchase its own products considered sales?
As in the title: The company is a manufacturing enterprise. It issues points to employees during the holidays. Employees can only use these points to purchase products manufactured by the company. After the employee purchase process is completed, is this behavior regarded as sales? Does the company need to pay value-added tax? Employees Do I also need to pay personal income tax?
answer:
products need to be treated as sales and paid VAT, and employees need to pay personal income tax.
The company issues points. Since the points can be used to "purchase" (exchange) goods produced by the company, the points are valuable, and employees are a reward due to their employment. According to Article 6 of the "Implementation Regulations of the Individual Income Tax Law", wage and salary income refers to the wages, salaries, bonuses, year-end salary increases, labor dividends, allowances, subsidies and other benefits received by individuals due to their employment or employment. related other income.
When employees use points to "purchase" (exchange) goods produced by the company, the ownership of the goods is realized and VAT needs to be paid in accordance with VAT regulations.
Accounting processing:
(1) When issuing points:
Debit: Employee compensation payable - wages
Loan: Advance accounts (calculated according to the value of points)
(2) Employees use points to "purchase" (exchange) the company's self-produced products When delivering goods:
Debit: Advances received, etc.
Credit: Main business income
Taxes payable - Value-added tax payable (output tax)
Note: Since the income has been confirmed in accounting, it will no longer be done during tax declaration. "Deemed sales" adjustment.
Question 7: Are the equipment given as gifts when selling cards treated as deemed sales?
Is the equipment given as a gift when selling phone cards treated as deemed sales or mixed sales?
answer:
According to the "Interim Regulations on Value Added Tax" and its implementation rules, gifts to external parties need to be deemed as sales only if they are "free gifts". "Equipment given by selling phone cards" is not a free gift, but a paid gift, so it does not need to be regarded as a sale.
However, the above inference is only based on legal principles. In practice, it is also necessary to pay attention to the issuance of VAT invoices in compliance with regulations, otherwise it may result in substantial deemed sales.
According to the "Notice of the State Administration of Taxation on Issuing the Provisions on Several Specific Issues of Value-Added Tax" (Guo Shui Fa [1993] No. 154), taxpayers sell goods through discounts. If the sales volume and discount amount are on the same invoice, If noted separately, value-added tax can be levied on the sales volume after discount; if the discount amount is separately invoiced, the discount amount shall not be deducted from the sales volume regardless of how it is handled financially.
At the same time, the "Notice of the State Administration of Taxation on the Issue of Deducting Discounts from Value-Added Tax Taxable Sales" (Guo Shuihan [2010] No. 56) once again made additional explanations: "The State Administration of Taxation issued the "Notice on Several Specific Issues of Value-Added Tax". Item (2) of Article 2 of "Notice on Provisions" (Guo Shui Fa [1993] No. 154) stipulates: "If a taxpayer uses discounts to sell goods, if the sales volume and the discount amount are stated separately on the same invoice, the taxpayer may VAT is levied on sales volume after discounts.”
Therefore, when issuing invoices for "sales of equipment given by phone cards", the invoices should be issued in accordance with the above commercial discount regulations. The gifts should be issued on the same invoice, and a negative discount amount should be issued on the same invoice.
In terms of corporate income tax, according to Article 3 of the "Notice of the State Administration of Taxation on Certain Issues Concerning the Confirmation of Corporate Income Tax Revenue" (Guo Shui Han [2008] No. 875): "If an enterprise sells its own products in a combination of buy one, get one free, etc., If it is not a donation, the total sales amount should be apportioned and recognized as sales income in proportion to the fair value of each item. "
Question 8: Why are abnormal losses not regarded as sales for VAT?
answer:
is regarded as a sale, which means taxpayers need to pay taxes.
According to the principle of "tax statutory", if the tax law does not clearly stipulate that deemed sales are required, there is no need for deemed sales. Neither the Interim Regulations on Value-Added Tax and its Implementation Rules nor Caishui (2016) No. 36 stipulate that "abnormal losses" need to be regarded as sales, but stipulate that the input tax of "abnormal losses" shall not be deducted. The input tax that has been deducted needs to be transferred out.
According to regulations, abnormal losses refer to situations in which goods are stolen, lost, rotten and deteriorated due to poor management, and goods or real estate are confiscated, destroyed, or demolished in accordance with the law due to violation of laws and regulations.
In other words, "abnormal losses" are caused by the company's own "man-made disasters", which means that the company actually "consumes" this part of the goods. According to the characteristics of the value-added tax chain tax, when the value-added tax cannot be passed to the downstream, then this link must actually bear the value-added tax passed from the upstream, which is why it cannot be deducted and does not need to be deemed as a sale.
Question 9: Why should external donations in deemed sales be credited to inventory goods instead of main business income?
External donations will be calculated as entries:
Debit: Non-operating expenses
Credit: Inventory goods (cost price)
Taxes payable - Value-added tax payable (output)
Isn’t external donation also regarded as one of the sales situations? Why is this loan for inventory goods instead of main business income?
In the case of deemed sales, if the enterprise uses it for employee welfare or foreign investment, the distribution is the main business income of the loan?
answer:
What is deemed sales?
The corporate income tax return form "A105000 Tax Adjustment Item Details" states in the instructions: "Deemed sales revenue" means "accounting treatment does not recognize sales revenue, but tax regulations recognize taxable revenue." The explanation
can also be used for taxes such as value-added tax and consumption tax.
Although according to Article 25 of the "Enterprise Income Tax Law Implementation Regulations", "deemed sales" should include non-monetary assets such as fixed assets, intangible assets and long-term equity investments, these non-monetary assets exist: fixed "Deemed sales income" from assets, intangible assets, etc. cannot be used as the basis for calculating the pre-tax deduction limit for advertising expenses and business entertainment expenses; long-term equity investments, etc. have a special tax adjustment form - "A105030 Investment Income Tax Adjustment Detailed Form".
Therefore, the "deemed sales" in the "A105010 Detailed Tax Adjustment Schedule for Deemed Sales and Specific Businesses of Real Estate Development Enterprises" mainly refers to the deemed sales of inventories, non-monetary losses in fixed assets, intangible assets and long-term equity investments, etc. Asset exchanges involving tax adjustments are not included.
In order to avoid disputes in tax collection and administration, the tax law stipulates that self-produced goods used for employee benefits need to be "deemed sales". However, according to the provisions of "Accounting Standards No. 9 - Employee Compensation", accounting has already been done With the recognition of income, of course, there is no need to make repeated tax adjustments when filing tax returns. If the enterprise's accounting does not confirm revenue in accordance with accounting standards, or the amount of revenue recognized does not meet the fair value (market price), the enterprise will need to make a tax adjustment of "deemed sales" in the tax return; if the enterprise does not proactively adjust After inspection and discovery, the tax bureau has the right to determine the income and require the enterprise to pay back taxes.
Therefore, for "deemed sales" stipulated in the tax law, accounting needs to be combined with the provisions of accounting standards. If the accounting has confirmed income that meets the provisions of the tax law, there is no need to make repeated adjustments.
