1. The company organizes employees to donate money to public welfare social organizations for epidemic prevention and control. The public welfare social organizations do not issue donation receipts for each person, but issue donation receipts for the company in a unified manner. In this case, can employees perform personal income tax deductions before tax?
Answer: Yes. When an individual enjoys the full deduction policy for donations in response to the COVID-19 epidemic, the specific operating methods should be implemented in accordance with the "Announcement of the Ministry of Finance and the State Administration of Taxation on Personal Income Tax Policy for Public Welfare and Charity Donations" (Announcement No. 99 of the Ministry of Finance and the State Administration of Taxation 2019), that is, if an institution, enterprises and institutions organize employees to carry out public welfare donations, the taxpayer can deduct it based on the donation notes issued in summary and employee details.
2. An individual made donations to areas where the epidemic prevention and control was prevented and controlled through public welfare social organizations. Because public welfare social organizations were unable to issue bills in time for some reason, they promised to issue bills to me after a period of time. Can I still enjoy the personal income tax deduction policy in this case?
Answer: Yes, when individuals enjoy the full deduction policy for donations in response to the new crown pneumonia epidemic, the specific operating methods should be implemented in accordance with the "Announcement of the Ministry of Finance and the State Administration of Taxation on Personal Income Tax Policy for Public Welfare and Charity Donations" (Announcement No. 99 of the Ministry of Finance and the State Administration of Taxation 2019). According to the 2019 Announcement No. 99 of Finance and Taxation, if an individual cannot obtain donated notes in a timely manner when donating, he can temporarily enjoy the deduction policy based on the donated bank payment voucher and obtain the donated notes within 90 days from the date of donation.
3. What amount does the masks, protective clothing and other medical supplies I purchase and donate will be deducted when calculating personal income tax?
Answer: When individuals enjoy the full deduction policy for donations in response to the new crown pneumonia epidemic, the specific operating methods should be implemented in accordance with the "Announcement of the Ministry of Finance and the State Administration of Taxation on Personal Income Tax Policy for Public Welfare and Charity Donations" (Announcement No. 99 of the Ministry of Finance and the State Administration of Taxation 2019). According to the 2019 Announcement No. 99 of Finance and Taxation, if you donate masks, protective clothing and other materials, the donation amount should be determined according to the market price and enjoy the pre-tax deduction policy. At the same time, in accordance with the relevant system requirements of public welfare donations, public welfare social organizations that accept donations will confirm the market price of donated materials in accordance with the corresponding measures. For example, when the time for individuals to purchase materials is very close to the time for actual donation, public welfare social organizations will determine the market price of materials according to the purchase price. It should be noted that this market price will be confirmed by the donor. Therefore, donors can determine the donation amount according to the market price of materials confirmed with public welfare social organizations.
4. Our company belongs to the Ministry of Finance and the State Administration of Taxation Announcement No. 8 of 2020. In order to expand the production capacity, it mainly produces guarantee materials and produces some other materials that are not related to the epidemic . Is it allowed to be included in the current cost and expenses in one lump sum before corporate income tax?
Answer: can be included in the current cost and expenses in one go and deducted before corporate income tax.
5. During the epidemic, can the corporate income tax be deducted before tax for the purchase of masks issued by our company to employees?
Answer: The cost of purchasing masks issued by your company to employees can be deducted before corporate income tax. If cash subsidies are issued, they can be deducted as pre-tax for employee welfare expenses.
6. We are a catering company. Due to the impact of the epidemic, some banquets booked before the New Year have been unsubscribed. The ingredients that have been purchased cannot be sold and have deteriorated. Can it be deducted before corporate income tax as a loss?
Answer: If ingredients belong to the inventory of catering enterprises, pre-tax deduction can be carried out in accordance with the relevant provisions of the "Announcement of the State Administration of Taxation on the Issuance of the "Management Measures for the Pre-tax Deduction of Enterprise Asset Loss Income Tax" (Announcement No. 25 of the State Administration of Taxation 2011).Moreover, according to the "Announcement of the State Administration of Taxation on Retention and Reference for Corporate Income Tax Asset Loss Data Retention and Reference for Reference" (Announcement No. 15 of the State Administration of Taxation 2018), if an enterprise suffers asset losses, it is only necessary to fill out the annual corporate income tax return "Detailed Table of Asset Loss Pre-Tax Deduction and Tax Adjustment Details" and no longer submit relevant asset losses information. Relevant information shall be kept by the company for reference.
7. During the epidemic, in order to ensure the safety, clean and hygienic workplace, our company purchased a batch of disinfectants online, but could not get the value-added tax invoice. What else can be used as a voucher before tax deduction?
Answer: According to the "Announcement of the State Administration of Taxation on the Issuance of the Management Measures for the Pre-Tax Deduction Voucher for Enterprise Income Tax" (Announcement No. 28 of the State Administration of Taxation 2018), the funds incurred by enterprises in China If the outgoing project is a VAT taxable item (hereinafter referred to as "taxable item"), the other party is a VAT taxpayer who has completed tax registration, and his expenses are made using an invoice (including an invoice issued by the tax authority in accordance with the regulations) as a pre-tax deduction voucher; if the other party is a unit that does not need to register in accordance with the law or an individual engaged in small and sporadic business, his expenses are made using an invoice or a receipt voucher and an internal voucher issued by the tax authority as a pre-tax deduction voucher. The receipt voucher should state the name of the receiving unit, the personal name and ID number, the expenditure item, the amount of the payment, and other related information.
8. Ministry of Finance The State Administration of Taxation Announcement No. 9 of 2020 on the taxation tax issues related to the prevention and control of pneumonia caused by the novel coronavirus infection, can the taxation and management and policy issues involved refer to the Ministry of Finance The State Administration of Taxation Announcement No. 99 of 2019? For example: the employee of the unit gives the donation to the company and the company will donate it uniformly. How can an individual deduct it before tax when calculating the personal income tax? How to confirm the amount of masks and other materials donated by individuals?
Answer: can refer to the specific operating methods for the full deduction policy for individual donations in this epidemic, in accordance with the "Announcement of the Ministry of Finance and the State Administration of Taxation on Personal Income Tax Policy for Public Welfare and Charity Donations" (Announcement No. 99 of the Ministry of Finance and the State Administration of Taxation 2019), that is, if an agency, enterprise and institution organize employees to carry out public donations, the taxpayer can deduct it based on the donation notes issued in summary and employee details.
9. Ministry of Finance The State Administration of Taxation Announcement No. 10 of 2020 stipulates that the unit issues medicines, medical supplies and protective supplies to individuals for the prevention of pneumonia caused by the novel coronavirus (excluding cash), which are not included in wages and salary income, and are exempt from personal income tax. What are the contents of "drugs", "medical supplies" and "protective supplies" in this document?
Answer: Considering that there are many types of drugs, medical supplies and protective products, it is difficult to list them one by one in terms of policies. Therefore, in principle, as long as drugs, medical supplies, protective supplies and materials directly related to the prevention of new coronavirus pneumonia, such as masks, goggles, disinfectants, gloves, protective clothing, etc., can enjoy the tax exemption regulations of the 2020 Announcement No. 10 of Finance and Taxation.
10. Ministry of Finance The State Administration of Taxation has a specific scope for the items and goods mentioned in Articles 1, 2 and 3 of 2020?
Answer: Ministry of Finance The State Administration of Taxation Announcement No. 9 of 2020 Articles 1 and 2 concerning the full deduction policy of what items donated in income tax can enjoy. According to Document No. 9 of 2020, enterprises and individuals can enjoy the full deduction policy as long as they donate through qualified public welfare social organizations or state organs, or directly to hospitals that undertake epidemic prevention and control tasks, and the purpose of these donations is to deal with the new crown pneumonia epidemic. That is, the tax policy only emphasizes the purpose of donations, and does not limit what items and goods are donated.
11. When the full amount of donations occur between our unit and employees, the taxable income is not enough to be deducted. Can the excess part be carried over?
Answer: In terms of corporate income tax, the qualified donation expenditures incurred by enterprises have been deducted in full when calculating the taxable income, and there is no problem of insufficient deduction. If there is a loss, the loss can be carried forward normally in accordance with the regulations.In terms of personal income tax, under the framework of the current personal income tax law and policy system, there are no relevant regulations for carrying forward deductions for subsequent years. Therefore, individual donations cannot be carried forward for deductions in the future years.
12. Can the group medical injury insurance donated directly to the hospital for epidemic prevention and control tasks (insurance is for medical staff) can enjoy the VAT exemption from Article 9, Article 3 of the Ministry of Finance and the State Administration of Taxation Announcement No. 9 of 2020?
Answer: According to the provisions of the "Implementation Measures for the Pilot of Business Tax to Combine Value-Added Tax in " (Attachment 1 of Finance and Taxation [2016] No. 36, hereinafter referred to as Document No. 36), taxpayers provide services to other units or individuals for public welfare purposes or target the public, which do not constitute sales services and value-added tax will not be levied.
Insurance companies provide insurance services to hospitals responsible for epidemic prevention and control without compensation, which does not fall within the scope of goods donation stipulated in the Announcement No. 9 of the State Administration of Taxation in 2020. However, in accordance with the relevant provisions of Document No. 36, the free services provided for public welfare or targeting the public are not deemed to be levied as sales.
13. If it complies with the policy of exemption from VAT as stipulated in the 2020 Announcement No. 8 and 9 of the State Administration of Taxation in 2020, the taxpayer has issued special value-added tax invoice for related businesses, and some of them are difficult to recover or issue red invoice . Can you choose to pay VAT for the part of the special value-added tax invoice, and the other parts still enjoy tax exemption?
Answer: According to Article 3 of the State Administration of Taxation on Tax Collection and Management Matters Related to Support the Prevention and Control of Pneumonia Infected by the New Coronavirus Infected Pneumonia Epidemic (No. 4 of 2020), taxpayers shall not issue special value-added tax invoices if they apply the relevant VAT exemption policies of Announcement No. 8 and Announcement No. 9; if they have issued a special value-added tax invoice, they shall issue the corresponding red invoice or invalidate the original invoice, and then apply the VAT exemption policy and issue a general invoice according to regulations. If a taxpayer has issued a special value-added tax invoice during the epidemic prevention and control period, and should issue a corresponding red-word invoice but fail to issue it in a timely manner, the VAT exemption policy may be applied first. The corresponding red-word invoice shall be issued within one month after the implementation of the relevant VAT exemption policy expires.
Before the publication of announcements No. 8 and 9, if the taxpayer engages in relevant taxable behaviors, the VAT exemption policy stipulated in Announcements No. 8 and 9 may be applied. However, if the taxpayer has issued a special value-added tax invoice and cannot issue the corresponding red invoice in accordance with the above provisions or invalidate the original invoice, the corresponding income shall be paid VAT in accordance with the regulations, and the remaining income can still enjoy the tax exemption policy. After the announcement is issued, the taxpayer shall apply the tax exemption policy and issue and use invoices in accordance with the provisions of Announcements No. 8 and No. 9.
14. The taxpayer issued a special value-added tax invoice in January. Since it cannot be invalidated and red-text invoices are issued temporarily, he is preparing to complete the issuance within one month after the implementation of the relevant VAT exemption policy expires in accordance with the document. Can I ask if I can file a tax exemption first when applying for the February VAT tax declaration?
Answer: According to Article 3 of the State Administration of Taxation on Tax Collection and Management Matters Related to Support the Prevention and Control of Pneumonia Infected by the New Coronavirus Infected Pneumonia Epidemic (No. 4 of 2020), taxpayers shall not issue special value-added tax invoices if they apply the relevant VAT exemption policies of Announcement No. 8 and Announcement No. 9; if they have issued a special value-added tax invoice, they shall issue the corresponding red invoice or invalidate the original invoice, and then apply the VAT exemption policy and issue a general invoice according to regulations. If a taxpayer has issued a special value-added tax invoice during the epidemic prevention and control period, and should issue a corresponding red-word invoice but fail to issue it in a timely manner, the VAT exemption policy may be applied first. The corresponding red-word invoice shall be issued within one month after the implementation of the relevant VAT exemption policy expires.
Therefore, taxpayers can first declare as tax exemption when applying for the February VAT tax declaration.
15. Taxpayers comply with the tax exemption policy of Article 5 of the Ministry of Finance and the State Administration of Taxation Announcement of Article 8 of 2020. If you issue a general value-added tax invoice with an applicable tax rate in January, do you need to recover the invoice or issue a red letter to enjoy the discount? Can you first enjoy tax exemption in accordance with Article 3, Paragraph 2, 2020 Announcement of the State Administration of Taxation, and issue a red invoice within one month after the implementation of the VAT exemption policy expires? How to issue a regular invoice when enjoying subsequent discounts?
Answer: According to Article 3 of the State Administration of Taxation on Tax Collection and Management Matters Related to Support the Prevention and Control of Pneumonia Infected by the New Coronavirus Infected Pneumonia Epidemic (No. 4 of 2020), taxpayers shall not issue special value-added tax invoices if they apply the relevant VAT exemption policies of Announcement No. 8 and Announcement No. 9; if they have issued a special value-added tax invoice, they shall issue the corresponding red invoice or invalidate the original invoice, and then apply the VAT exemption policy and issue a general invoice according to regulations. If a taxpayer has issued a special value-added tax invoice during the epidemic prevention and control period, and should issue a corresponding red-word invoice but fail to issue it in a timely manner, the VAT exemption policy may be applied first. The corresponding red-word invoice shall be issued within one month after the implementation of the relevant VAT exemption policy expires.
If taxpayers apply the relevant VAT exemption policy of Announcement No. 8 and Announcement No. 9, if they need to issue a corresponding red invoice or invalidate the original invoice, they will only be targeted at "Special VAT invoices for VAT". If an ordinary VAT invoice with applicable tax rates has been issued, you do not need to recover the invoice and reissue it before enjoying the tax exemption policy. You can directly make a tax exemption declaration. After the announcement is issued, when the taxpayer enjoys tax exemption in accordance with the regulations, if the ordinary invoice is issued with the tax rate or collection rate column, the word "Tax exemption" shall be filled in the tax rate or collection rate column.
16. Our company bought and issued masks, alcohol and other protective supplies to employees for the novel coronavirus. When we bought it, we obtained a special value-added tax invoice. Is this part of the input applicable to "used for collective welfare" and cannot be deducted?
Answer: According to the provisional VAT regulations and other relevant provisions, if your company purchases masks, alcohol and other protective supplies during the epidemic, which are used for the resumption of work and production of this company, labor protection supplies that are in special periods, and if they obtain legal and valid tax deduction certificates, the input tax can be deducted from the output tax.
17. The Ministry of Finance The State Administration of Taxation Announcement No. 8 of 2020 stipulates that income obtained from providing residents with express delivery and delivery services for essential daily necessities is exempt from value-added tax. How to determine the specific scope of necessary living supplies here? How should our company determine whether it is tax-free?
Answer: "Announcement of the Ministry of Finance and the State Administration of Taxation on Tax Policies on Supporting the Prevention and Control of Pneumonia Epidemic by the New Coronavirus Infection" (No. 8 of 2020) stipulates that the income obtained by taxpayers to provide residents with express delivery and delivery services for essential daily necessities is exempt from value-added tax. The income obtained from providing residents with express delivery services for essential daily necessities refers to the income obtained from the collection and delivery services provided for residents' personal express delivery services.
18. After the VAT declaration and tax payment period in February 2020 was further extended to No. 28, will the period for checking and confirming the VAT special invoice be extended?
Answer: Yes. According to the "Notice of the State Administration of Taxation on Further Extending the Tax Payment Period in February 2020" (Tax General Letter [2020] No. 27), the tax payment period in February will be further extended to February 28, and the period for taxpayers to confirm the purpose of the VAT tax deduction voucher through the VAT invoice comprehensive service platform will also be extended to February 28 accordingly.
19. Due to the epidemic, our company has reduced and exempted the rent for three months to enterprises that have rented our factory buildings for a long time. Does the corresponding rent for these three months need to be paid value-added tax? Since the rent has been collected in advance and invoiced to the other party, what should I do after I refund the rent for three months?
Answer: According to the "Announcement of the State Administration of Taxation on Issues of Value-Added Tax Collection and Administration of Land Price Deduction Time" (No. 86 of 2016), if a taxpayer rents out real estate and the lease exemption period stipulated in the lease contract, it does not belong to the "Implementation Measures for the Pilot Implementation of Business Tax to Replace Value-Added Tax" (Attachment 1 of Finance and Taxation [2016] No. 36 Appendix 1) and does not levy VAT. Your company can apply the above VAT policy for rent-free period by signing a supplementary lease agreement. Since your company has collected rent in advance and issued invoices, a red invoice should be issued for the refund of the three-month rent to offset the corresponding rent amount.
20. My factory makes non-woven fabrics. Due to the epidemic, the demand for masks has increased sharply. I recalled employees at a normal salary of 5 times and actively contacted the resigned employees to start work. The district government issued a start-up subsidy to my factory. Does this subsidy require value-added tax?
Answer: "Announcement of the State Administration of Taxation on the Cancellation of Value-Added Tax Tax Deduction Voucher Certification and Confirmation Period" (No. 45 of 2019) stipulates that if the fiscal subsidy income obtained by taxpayers is directly linked to the income or quantity of their sales of goods, services, intangible assets, and real estate, the value-added tax shall be calculated and paid according to regulations. Financial subsidy income obtained by taxpayers in other circumstances does not belong to VAT taxable income and does not levy VAT. The start-up subsidy issued by the district government to your factory is not directly related to the income or quantity of goods sold or services provided by your factory, and there is no need to calculate and pay VAT for this subsidy.
