Although the current Enterprise Income Tax Law and its implementing regulations do not specify and explain the basis for deduction of relevant expenditures, according to the Opinions of the State Administration of Taxation on Several Issues Concerning the Strengthening of the Administration of Enterprise Income Tax (Guoshifa [2005] No. 50), "expenditures for which real, legal and valid documents cannot be provided shall not be deducted before tax. deducted before tax."
So, on the basis of the real occurrence of economic business, what kind of evidence should be obtained, to be considered real, legal and effective? In order to do as the basis for pre-tax deduction of enterprise income tax?
Here, the type of economic business often involved in accounting practice, from the following aspects to understand.
First, the external expenditure business involving turnover tax
The turnover tax includes value-added tax, consumption tax, business tax, customs duty, and the economic business involving turnover tax are: the sale of goods, the provision of labor services, the transfer of intangible assets and the sale of real estate, imports of goods and so on.
According to the Tax Collection and Management Law, "Units and individuals, in the purchase and sale of commodities, the provision or acceptance of labor services and other business activities, should issue, use and obtain invoices in accordance with the provisions".
In the Measures for the Administration of Invoices, it is further stipulated that "all units and individuals engaged in production and business activities should obtain invoices from the payee for the purchase of commodities, acceptance of labor services, and other expenditures when engaging in other business activities."
In summary, we can understand that: the enterprise in the business activities of the relevant expenditures, such as for the recipient, belong to the flow of taxable items, should be obtained by the recipient of the invoice issued in accordance with the requirements of the law, in order to do for the pre-tax deduction of the enterprise income tax legal documents.
In practice, some businesses have their own special regulations on the acquisition, use and deduction of invoices. More often involved in business such as:
1, the need for the payer to the payee to issue invoices, including: the enterprise to the agricultural production units and individuals to buy primary agricultural products, should be issued "agricultural products purchase invoices" or "grain purchase invoices; Waste materials recycling unit to acquire waste materials, should be issued "waste materials recycling invoice"; and so on.
Can issue "agricultural products acquisition invoice", generally is the value-added taxpayer, but eligible business taxpayers, can also apply to the local tax bureau to purchase and issue "agricultural products acquisition invoice", such as the establishment of townships, scenic areas, restaurants, resort hotels, etc.. The company's business is a very important part of the company's success.
2, there are special requirements for the form of payment, including: the payment of commission business, according to Cai Shui [2009] No. 29, in addition to paying commissions to individuals, enterprises in cash and other non-transferable forms of payment of commissions, not deductible before tax. In other words, if it is not paid in the form of transfer, even if the business is real and the invoice of the intermediary service organization is obtained, it can not be deducted before tax.
3, the real estate industry, the special provisions of the bills, "real estate development and operation of business enterprise income tax treatment methods" (Guo Shui Fa [2009] No. 31), the expenditure of the bills have special provisions, its Article 34: "enterprises in the settlement of taxable costs of the actual expenditure should be obtained but did not obtain the legal bills, shall not be counted as taxable costs! If the enterprise has not obtained legal documents, the expenditure shall not be included in the taxable cost, but shall be included in the taxable cost in accordance with the regulations when legal documents are obtained". Article 32 (1): "If the contracted works are not finalized to obtain the full amount of invoices, under the premise of sufficient supporting information, the amount of its invoice shortfall can be withheld, but the maximum shall not exceed 10% of the contract amount".
4, difficult to obtain invoices of expenditure, how to deduct? In business operations, the business really happened, but can not get the invoice, can not be deducted before the tax? The tax law does not have a clear provision, but also one of the focus of the dispute between the two sides. In this regard, some local tax authorities have adopted a more lenient policy, for example, "Hebei Province, catering enterprises income tax collection and management methods" (Hebei local tax ground [2010] No. 31) Article XVII:
"Taxpayers purchasing all kinds of melons, fruits, vegetables, edible fungi and fresh eggs, etc., really no legal bills, should be deducted on the basis of real and effective vouchers. Real and effective vouchers must have the following conditions:
(a) the unit of procurement staff issued by the purchase order, the purchase order should be recorded in the name of the purchased items, the number of units, the unit price, the amount of money, the purchase of the time, place, and the signature of the purchaser and the supplier, etc.;
(b) the unit of the person in charge of purchasing and supplying the department, the inventory custodian of the acceptance of the receipt of proof of inventory issued by the person in charge of purchasing and supplying the unit;
p> (C) the unit issued by the manager of the catering department to sign the certificate. "
It should also be noted that, although the invoice management measures, invoices should be printed on the national unified invoice Supervisory Chapter. However, there are a large number of so-called
"professional invoices" that are not stamped with the unified invoice supervisory seal, which are still regarded as legal and valid invoices. For example, common train tickets, airplane tickets, consignment notes, bank fee receipts, postal delivery receipts and so on.
Second, does not involve turnover tax external expenditure business
In the enterprise's external expenditure, does not involve the turnover tax is also a lot of, broadly speaking, the following situations:
1, taxes, refers to the enterprise according to the tax law to the tax authorities to pay the tax, the enterprise income tax deduction before the tax items in the tax, excluding value-added tax paid by general taxpayers of value-added tax, the value-added tax. The tax in the item of enterprise income tax pre-tax deduction does not include the value-added tax paid by the general taxpayers of value-added tax, the tax withheld on behalf of the taxpayer, the tax collected on behalf of the taxpayer, as well as the tax fines, tax penalties, and the tax late payment fee; the enterprise pays the taxes and fees and should obtain the tax payment certificate, and can't make the deduction on the basis of the payment certificate of the bank.
2, to the government management of administrative fees, confiscation, donations, resource use (compensation) fees. Enterprises incurring the aforementioned expenditures should obtain the appropriate financial instruments.
According to the "Sichuan Provincial Fiscal Notes Management Measures" (2006), there are four types of general fiscal notes:
"Sichuan Provincial Government Non-Tax Revenue General Payment Letter", "Sichuan Provincial Government Non-Tax Revenue General Notes", "Sichuan government non-tax revenue general bills" and "Sichuan Province, non-operational settlement uniform receipt", are overprinted "Sichuan Province, fiscal bills Supervision Chapter".
In addition, there is a financial instrument "special bills", set up by the unit in accordance with the provisions of the printing, use, such as confiscation of bills (Note: administrative penalties paid fines, confiscated property losses, such as sewage fines, confiscated land premiums, and so on, shall not be deducted before the tax).
3. Expenditures incurred on institutions or other non-profit organizations, such as medical fees, education fees, quarantine and testing fees, litigation and mediation fees, agency fees (trademarks/patents), as well as donations and expenditures to public welfare organizations.
4. Non-operating business expenses incurred between enterprises. For example: due to failure to fulfill the contract, or failure to fully fulfill the contract, the confiscated deposit, deposit, payment of liquidated damages, compensation, etc. (hereinafter referred to as "breach of contract expenses"); non-contractual liability losses, such as tort compensation. For the aforesaid expenditures, "non-business settlement uniform bills" issued by the payee shall be obtained. (Note: According to the "Sichuan financial non- (2009) No. 4), the enterprise can apply for the purchase of "non-business settlement of uniform bills", you can also go to the local financial instrument management department on-site filling out "non-business settlement of uniform bills") According to the "Provisional Regulations for the Implementation of Value-added Tax Regulations", "Provisional Regulations for the Implementation of Business Tax Regulations", sales (turnover) out-of-the-money expenses, including: "...... breach of contract, late payment, interest on delayed payment, compensation ...... "Such expenditures, that is, not non-operating expenditures, should obtain the invoice issued by the recipient.
So, which default expenditures are non-operational expenditures? In my opinion, it can be understood from the following aspects:
First, the breach of contract expenditure arising from the termination of the contract that has not yet been performed is non-operational expenditure. For example, when the loss contract appears, the enterprise in order to reduce losses, it is possible to choose to pay liquidated damages, or to give up the deposit, deposit and cancel the contract.
Secondly, the enterprise in order to obtain the benefits of the contract outside the interests, and early termination of the contract being performed to produce the default expenditure, for non-operational expenditure. For example, when the housing tenant believes that the sale of housing can obtain greater benefits, in order to terminate the housing lease contract being performed, and the default expenditure incurred.
If the enterprise purchases goods, accepts labor services, transfers intangible assets, real estate, borrowed funds, due to incomplete or delayed performance of contractual obligations, and paid to the creditor party, and the subject of the contract directly directly related to the breach of contract expenditures, usually for business expenditures, you should obtain an invoice.
New rules for pre-tax deduction of union funds
Recently, the State Administration of Taxation (SAT) "Announcement on the Pre-tax Deduction of Enterprise Income Tax on behalf of Tax Authorities for Collection of Union Funds" (SAT Announcement No. 30, 2011, hereinafter referred to as the "Announcement No. 30") has stipulated that since January 1, 2010, the tax authorities on behalf of the collection of union funds before the deduction of enterprise income tax voucher. (hereinafter referred to as "Announcement No. 30") stipulates that since January 1, 2010, in the areas where the tax authorities are entrusted with the collection of trade union funds on behalf of the enterprises, the trade union funds allocated by the enterprises can also be deducted before tax on the basis of the legal and valid vouchers for the collection of the trade union funds. This means that the tax authorities are entrusted with the collection of trade union funds and the collection of vouchers issued by the tax authorities can also be deducted before tax.
On November 9, 2010, the State Administration of Taxation (SAT) issued the Announcement on the Problem of Pre-tax Deduction of Trade Union Funds for Enterprise Income Tax (SAT Announcement No. 24 of 2010), which stipulates that since July 1, 2010, the part of employees' trade union funds allocated by the enterprise not exceeding 2% of the total wages and salaries will be deducted before enterprise income tax on the basis of the special receipt for the revenue of trade union funds issued by the trade union organization. The part of employees' labor union funds not exceeding 2% of the total wages and salaries shall be deducted before EIT on the basis of the "Special Receipt for Labor Union Funds Income" issued by the labor union organization. Since this provision does not specify whether the fee vouchers issued by the tax authorities entrusted to collect the labor union funds can be used as the basis for pre-tax deduction, Notice No. 30 has made clear provisions in this regard. This is to improve the scope of pre-tax deduction vouchers, in favor of taxpayers to carry out enterprise cost accounting, etc. are of great significance. At present, the tax authorities are entrusted with the collection of trade union funds issued by the collection vouchers, in addition to the commissioned department to provide the "special receipt for trade union funds income", mainly transfer tax clearance vouchers and cash tax clearance certificates, that is to say, enterprises in the future can also be based on the amount of trade union funds contained in the transfer tax clearance vouchers and cash tax clearance certificates for pre-tax deduction; for the trade union funds have been paid in 2010 due to the collection of these two types of tax clearance certificates and did not carry out pre-tax deduction. For those who did not make pre-tax deductions for the trade union funds paid in 2010 due to the receipt of these two types of tax clearance certificates, the taxpayers can adjust the amount of tax payable on their own within the range of the legal standard; those who have overpaid the tax as a result can apply for a tax refund or set off against the tax payable in the next period.
The pre-tax deduction of labor union funds must meet the statutory deduction standard in addition to the legal deduction vouchers. Article 41 of the Regulations for the Implementation of the Enterprise Income Tax Law stipulates that the part of the employees' labor union funds allocated by the enterprise, not exceeding 2% of the total wages and salaries, is allowed to be deducted. The Enterprise Income Tax Law implements an actual deduction system for salary and wage expenses, i.e., the trade union funds that are allowed to be deducted before tax must be the portion that has actually been incurred by the enterprise, and the trade union funds that have been accrued in the books but have not actually been incurred shall not be deducted before tax in the taxable year. If the actual number of labor union expenses, the number of accruals on the books and the number of deduction limit are not the same, the principle of "lower, not higher" should be applied to determine the amount of labor union expenses that can be deducted before tax, and the portion of the accruals on the books that exceeds the deduction limit should be adjusted to increase the amount of taxable income. Therefore, the labor union funds paid in excess of the prescribed standard are not deductible before tax even after obtaining the statutory deduction documents.
It is important to note that the trade union funds paid by individual businessmen can also be deducted within the scope of the prescribed standards. Ministry of Finance, State Administration of Taxation "on the adjustment of individual business, sole proprietorships and partnerships on the adjustment of individual income tax deduction standard notice" (Cai Shui [2008] No. 65) provides that the individual business, sole proprietorships and partnerships allocated to the trade union funds in the total wages and salaries of 2% of the standard deduction. Therefore, the trade union funds paid by individual industrial and commercial households can be deducted before their personal income tax according to the law as long as they have obtained the legal deduction vouchers and are within the scope of the prescribed standards.