According to the provisions of the Announcement of the Ministry of Finance and the General Administration of Taxation on Clarification of the Policies on VAT Reduction and Exemption and Other Policies on VAT Reduction and Exemption for Small-Scale Taxpayers (No. 1 of 2023, hereinafter referred to as Announcement No. 1), the following matters relating to the collection and administration of levy and tax are hereby announced As follows:
I. Small-scale taxpayers of value-added tax (hereinafter referred to as small-scale taxpayers) conducting VAT-taxable sales behaviors, with combined monthly sales not exceeding RMB 100,000 yuan (for a quarterly tax period, quarterly sales not exceeding RMB 300,000 yuan, hereinafter referred to as the same) are exempted from the levy of value-added tax (VAT).
Small-scale taxpayers who engage in value-added taxable sales, with aggregate monthly sales exceeding 100,000 yuan, less sales of real estate sales occurring in the current period not exceeding 100,000 yuan, sales of goods, services, services, and sales of intangible assets are exempted from value-added tax.
Second, small-scale taxpayers applying the VAT differential tax policy to determine whether the sales after the difference can enjoy the VAT exemption policy stipulated in Article 1 of Announcement No. 1.
The difference in sales amount has been filled in the relevant column of "Exempted Sales" in the "Return of VAT and Additional Taxes and Fees (for Small-scale Taxpayers)".
Third, other individuals referred to in Article 9 of the Implementing Rules of the Provisional Regulations of the People's Republic of China on Value-added Tax (VAT) who lease real estate in the form of a flat-rate rent may distribute the rental income evenly over the corresponding lease period, and if the monthly rental income does not exceed 100,000 yuan after the distribution, they are exempted from the value-added tax (VAT).
Fourth, if a small-scale taxpayer obtains taxable sales and applies the VAT exemption policy stipulated in Article 1 of Announcement No. 1, the taxpayer may choose to waive the exemption for such sales and issue special VAT invoices.
V. If a small-scale taxpayer obtains taxable sales and applies the policy of reducing the VAT rate by 1% as stipulated in Article 2 of Announcement No.1, the taxpayer shall issue VAT invoices at the rate of 1%. Taxpayers may choose to waive the tax reduction on such sales income and issue VAT invoices.
VI. Small-scale taxpayers obtaining taxable sales, the time of incurring tax obligations as of December 31, 2022, have been issued VAT invoices. If a deficit needs to be issued due to sales discount, suspension or return, the corresponding levy rate deficit or tax-free deficit invoice shall be issued; if there is an error in invoicing that needs to be reissued, the levy rate deficit invoice or tax-free deficit invoice shall be issued to reissue the correct blue-letter invoice.
Seven, small taxpayers who have VAT taxable sales behavior, with total monthly sales exceeding 100,000 yuan, the VAT-exempted sales and other items shall be filled in the "Value-added Tax and Additional Tax Return (for small taxpayers)" "Exempted Sales for Piecemeal Enterprises" or "Sales Below the Starting Point". For the sales of VAT levied at 1% rebate rate, fill in the corresponding column of "VAT Exempted Sales (3% Levy Rate)" of "VAT and Additional Tax Return (For Small Scale Taxpayers)", and the deductible VAT amount is calculated at 2% of sales as "Deduction of Current Taxable Amount" of "VAT and Additional Tax Return (For Small Scale Taxpayers)". Deduction of Tax Payable for the Current Period" and "Detailed Return of VAT Deductions and Exemptions" Tax Deductions
VIII. Small-scale taxpayers who pay tax within a certain period of time can choose to pay tax for one month or one quarter. Once selected, no change is allowed within 1 fiscal year.
IX. Small-scale taxpayers who are required to make advance payment of VAT according to the current regulations are not required to make advance payment of tax for the current period if their monthly sales do not exceed 100,000 yuan in the place where the advance payment is made. If the withholding unit realizes monthly sales exceeding 100,000 yuan, the withholding items applying a withholding rate of 3% shall be subject to a reduced VAT levy at a withholding rate of 1%.
Ten, small-scale taxpayers in the unit and individual employer sales of real estate, its tax period, in accordance with Article 9 of this announcement and other existing policies to decide whether to prepay value-added tax; other individuals sales of real estate, continue to be exempted from value-added tax in accordance with the current provisions.
XI. Taxpayers in the productive service industry as stipulated in the Announcement of the Ministry of Finance and the State Administration of Taxation and the General Administration of Customs on Relevant Policies on Deepening Value-added Tax Reform (No. 39 of 2019) and Announcement No. 1, the first time in the year to confirm the application of the policy of 5% additional deduction, they should report the Declaration on Application of the Policy of 5% Additional Deduction through the e-Taxation Bureau or the Tax Service Hall (see Appendix I); the Announcement of the Ministry of Finance and the State Administration of Taxation on Clarifying the Policy of Value-added Tax Credits and Deductions for the Living Service Industry (No. 87 of 2019) and the taxpayers in the living service industry as stipulated in Announcement No. 1, the taxpayers in the living service industry that confirm the application of the 10% addition and deduction policy for the first time in the year should submit the "Declaration on the Application of the 10% Addition and Deduction Policy" (see Attachment II) through the E-Tax Bureau or the Taxation Service Hall.
XII. Other collection management matters for taxpayers applying the policy of adding deduction shall be implemented in accordance with Article 2 of the Announcement of the State Administration of Taxation on Input Tax Credit for Domestic Passenger Transportation Services and Other Issues of Value-added Tax Levy and Administration (No. 31 of 2019) and other relevant provisions.
Thirteen, taxpayers apply for withholding or refund of paid tax in accordance with the provisions of Article 4 of Announcement No. 1. Where VAT invoices have been issued to the purchasers, the VAT invoices shall be recovered first.
Fourteenth, this Announcement shall come into force on January 1, 2023. Article 8 of the Announcement of the State Administration of Taxation on Matters Relating to the Deepening of Value-added Tax Reform (No. 14 of 2019) and the annexed Statement on the Application of the Policy of Adding Credits and Deductions, Article 1 of the Announcement of the State Administration of Taxation on Matters Relating to the Management of VAT Invoices and Other Related Matters ( No. 33 of 2019) and the annexed Statement on the Application of the Policy of Adding Credits and Deductions of 15%, and the Statement of the State Administration of Taxation on the Support of Individual Industrial and Commercial Enterprises Resumption of Work and Resumption of Business and Other Matters of Tax Collection and Administration ) No. 5 of 2020), Articles 1 to 5, and the Announcement of the State Administration of Taxation on Issues Concerning the Exemption of Small-Scale Taxpayers from Value-Added Tax Levy (2021 )
Legal Basis:
Regulations for the Implementation of the Individual Income Tax Law of the People's Republic of China (PRC)
Article 1 In accordance with the PRC Individual Income Tax Law (hereinafter referred to as the Individual Income Tax Law), these Regulations are formulated.
Article 2 The term domicile in China referred to in the Individual Income Tax Law means habitual residence in China by virtue of domicile, family, or economic interests; and the term income derived from within and outside China refers to income derived from within China and income derived from outside China, respectively.
Article 3 Unless otherwise provided by the competent financial and taxation authorities of the State Council, the following income, regardless of whether or not the place of payment is within the territory of China, shall be considered to be income originating from within the territory of China:
(1) Income obtained from the provision of services within the territory of China for the purpose of holding office, being employed, or performing duties;
(2) Income obtained from the leasing of property to lessees for use within the territory of China;
(3) Income obtained from the lease of property to lessees for use within the territory of China;<
(iii) Income derived from licensing various concessions for use in China;
(iv) Income derived from the transfer of immovable property and other property in China or the transfer of other property in China;
(v) Income derived from interest, dividends, and bonuses obtained from enterprises, institutions, other organizations, and resident individuals in China.
Article 4 Individuals who do not have a residence in China and have resided in China for a total of 183 days in a year for less than six consecutive years shall be exempted from individual income tax on income derived from sources outside of China and paid for by units or individuals outside of China upon filing with the competent tax authorities; and if there is a single departure of more than 30 days in a year for a total of 183 days in a year for which the residence in China is full, the income derived from sources outside of China shall be exempted from individual income tax. In any year in which the residence in China has accumulated 183 days, if one of the departures exceeds 30 days, the number of consecutive years in the year in which the residence in China has accumulated 183 days shall be counted again.
Article 5 Individuals who do not have a residence in China and who have resided in China for an aggregate of not more than 90 days in a taxable year shall be exempted from individual income tax on the portion of their income derived in China that is paid by their employers outside China and that is not borne by the employer's organizations or establishments in China.
Article 6: Scope of Individual Income under the Individual Income Tax Law:
(1) Income from wages and salaries refers to wages, salaries, bonuses, year-end raises, labor bonuses, allowances, subsidies, and other incomes derived by individuals from their positions or employment.
(2) Income from remuneration for labor services refers to the income derived by an individual from performing labor services, including design, decoration, installation, drafting, laboratory, testing, medical, legal, accounting, consulting, lecturing, translating, reviewing, painting, calligraphy, sculpture, film and television, audio-recordings, video-recordings, performances, performances, advertisements, exhibitions, technical services, referral services, brokering services, agency services, as well as other income derived from labor services. income.
(3) Income from remuneration for manuscripts refers to the income obtained by an individual for the publication and dissemination of his/her works in the form of books, newspapers and magazines.
(4) Royalty income refers to the income obtained by an individual by providing the right to use patent rights, trademark rights, copyrights, non-patented technologies and other franchises; the income obtained by providing the right to use copyrights is excluded from the income from manuscripts.
(5) Business income refers to:
1. Income derived from production and business activities of individual industrial and commercial households, and income derived from the production and business activities of sole proprietorships and partnerships registered within the country by investors of sole proprietorships and partners of partnerships;
2. Income derived from the running of schools, medical treatment, counseling, and other remunerated services;
3. Income derived from the provision of patent rights, trademark rights, copyrights, non-patented technologies, and other franchises; income derived from the provision of the right to use copyrights is not included in the income from manuscripts. Income from contracting, leasing, subcontracting and subletting to enterprises and institutions;
4. Income from other production and business activities.
(6) interest, dividend and bonus income, refers to the interest, dividend and bonus income obtained by an individual who owns debt, equity and so on.
(7) Income from property leasing refers to the income obtained by an individual from the leasing of real estate, machinery and equipment, vehicles and vessels, and other property.
(h) Income from property transfer refers to the income derived from the transfer of securities, equity, shares in partnerships, real estate, machinery and equipment, vehicles and vessels, and other property.
(ix) Incidental income refers to income from winning prizes, jackpots, lotteries and other incidental income.
If it is difficult to define the items of taxable income obtained by an individual, the competent tax authorities under the State Council shall determine them.
Article 7 The method of levying individual income tax on income from stock transfers shall be separately prescribed by the State Council and reported to the Standing Committee of the National People's Congress for the record.
Article 8 The forms of individual income include cash, in-kind, marketable securities and other forms of economic benefits; if the income is in-kind, the taxable income shall be calculated in accordance with the price stated on the vouchers obtained, and if the in-kind without vouchers or the price stated on the vouchers is obviously low, the taxable income shall be approved with reference to the market price; if the income is in securities, the taxable income shall be approved in accordance with the face price and the market price; if the income is in stocks, the taxable income shall be approved with reference to the market price. If the income is securities, the taxable income shall be approved according to the face price and market price; if the income is other forms of economic benefits, the taxable income shall be approved with reference to the market price.
Article 9 of the Individual Income Tax Law, Article 4, paragraph 1, item 2 of the national bond interest, refers to individuals holding the People's Republic of China * * * and the State Ministry of Finance issued by the bonds and the interest; the state-issued financial bond interest, refers to individuals holding the State Council approval of the issuance of financial bonds and the interest obtained.
Article 10: The subsidies and allowances issued in accordance with the unified regulations of the State, as referred to in Article 4, Paragraph 1, Item 3 of the Individual Income Tax Law, refer to the special governmental allowances and academician's allowances issued in accordance with the regulations of the State Council, as well as other subsidies and allowances exempted from the payment of the Individual Income Tax as stipulated by the State Council.
Article 11: The welfare expenses referred to in Article 4, Paragraph 1, Item 4 of the Individual Income Tax Law refer to the living subsidies paid to individuals from the welfare expenses or trade union funds set aside by enterprises, institutions, state organs and social organizations in accordance with the relevant provisions of the State; and the relief payments referred to refer to the subsidies paid to individuals by the civil affairs departments of the people's governments at all levels for the difficulties in their living.
Article 12: The income of diplomatic representatives, consular officials and other personnel of embassies and consulates of various countries in China, which shall be exempted from tax in accordance with the provisions of the relevant laws, as referred to in Item 8 of Paragraph 1 of Article 4 of the Individual Income Tax Law, refers to the income which shall be exempted from tax in accordance with the "Regulations of the Chinese People's Republic of China on the Diplomatic Privileges and Immunities of the Chinese People's Republic of China" and the "Regulations of the Chinese People's Republic of China on the Privileges and Immunities of the Chinese People's Republic of China Consular Affairs".
Article 13 Other deductions determined in accordance with the law, as referred to in Article 6, Paragraph 1, Item 1 of the Individual Income Tax Law, include individuals' contributions to enterprise annuities and occupational annuities in compliance with the state regulations, and individuals' expenditures for purchasing commercial health insurance and tax-deferred commercial pension insurance in compliance with the state regulations, as well as other items that can be deducted as stipulated by the State Council.
Special deductions, special additional deductions and other deductions determined in accordance with the law are limited to the taxable income of a resident individual for one tax year; if the deductions are not completed in one tax year, they will not be carried forward for deduction in subsequent years.
Article 14 Each time referred to in Article 6(1)(2), (4) and (6) of the Individual Income Tax Law shall be determined in accordance with the following methods:
(1) Income from remuneration for labor services, income from manuscripts, and income from royalties shall be determined once for the one-time income, and once for the income obtained within one month for the continuous income from the same item.
(2) Income from property leasing, the income obtained within one month as one time.
(3) Income from interest, dividends and bonus, the income obtained at the time of payment of interest, dividends and bonus shall be considered once.
(d) Occasional income, each time the income is obtained as one.
Article 15 Costs and expenses referred to in Article 6, Paragraph 1, Item 3 of the Individual Income Tax Law refer to the direct expenditures incurred in production and business activities and the indirect expenses allocated to costs, as well as the selling expenses, administrative expenses and financial expenses; losses referred to are the losses incurred in production and business activities in the form of losses, destruction and scrapping of fixed assets and inventories, losses in the form of transfers of property, losses from bad debts, losses caused by natural disasters and other force majeure factors. , losses caused by natural disasters and other force majeure factors, and other losses.
Individuals with business income, without comprehensive income, should calculate their taxable income for each tax year by subtracting 60,000 yuan of expenses, special deductions, special additional deductions and other deductions determined by law. The special additional deductions shall be deducted when making the remittance.
Engaged in production and business activities, do not provide complete and accurate tax information, can not correctly calculate the taxable income, the competent tax authorities to approve the taxable income or taxable amount.
Article 16 The original value of property as stipulated in Article 6, Paragraph 1, Item 5 of the Individual Income Tax Law shall be determined in accordance with the following methods:
(1) For marketable securities, it shall be the purchase price as well as the relevant expenses paid in accordance with the regulations at the time of purchase;
(2) For buildings, it shall be the construction cost or the purchase price, as well as the other relevant expenses;
(3) For the right to use land, it shall be the amount paid to acquire the right to use land. (c) land use rights, as the amount paid for acquiring land use rights, the cost of developing the land, and other related expenses;
(d) machinery, equipment, vehicles and vessels, as the purchase price, transportation costs, installation costs, and other related expenses.
Other property, the original value of the property shall be determined with reference to the method stipulated in the preceding paragraph.
Taxpayers who do not provide complete and accurate evidence of the original value of the property and cannot determine the original value of the property in accordance with the method prescribed in the first paragraph of this Article, the competent tax authorities shall approve the original value of the property.
Reasonable expenses referred to in Article 6, Paragraph 1, Item 5 of the Individual Income Tax Law mean the relevant taxes and fees paid in accordance with the regulations when selling the property.
Article 17 Income from the transfer of property shall be taxed according to the amount of income from a single transfer of property less the original value of the property and reasonable expenses.
Article 18 Where two or more individuals **** the same income from the same item, tax shall be computed separately for the income derived by each of them in accordance with the provisions of the Individual Income Tax Law.
Article 19 The donations made by individuals of their income to public welfare and charitable undertakings such as education, poverty alleviation and relief of poverty, as referred to in Article 6(3) of the Individual Income Tax Law, refers to the donations made by individuals of their income to public welfare and charitable undertakings such as education, poverty alleviation and relief of poverty, through public welfare social organizations and state organs within the territory of China; and the amount of taxable income, refers to the amount of taxable income before deducting the amount of donations in the calculation.
Article 20 The comprehensive income and business income obtained by a resident individual from within and outside of China shall be combined to calculate the amount of tax payable; other income obtained from within and outside of China shall be calculated separately.
Article 21: The amount of individual income tax paid abroad referred to in Article 7 of the Individual Income Tax Law refers to the amount of income tax that should be paid and has actually been paid in accordance with the laws of the country (region) from which the income is derived by a resident individual from sources outside China.
The taxable amount of a taxpayer's income derived from sources outside China calculated in accordance with the provisions of this Law, as referred to in Article 7 of the Individual Income Tax Law, is the limit of a resident individual's credit for the income tax paid outside China on comprehensive income, business income and other income (hereinafter referred to as the credit limit). Unless otherwise provided by the competent departments of finance and taxation under the State Council, the sum of the credit limit of comprehensive income, the credit limit of business income and the credit limit of other income derived from a country (region) outside China shall be the credit limit of the income derived from that country (region).
If the amount of individual income tax actually paid by a resident individual in a country (region) outside China is less than the credit limit for income derived from that country (region) calculated in accordance with the preceding paragraph, the resident individual shall pay the difference in China; if the amount exceeds the credit limit for income derived from that country (region), the exceeding amount shall not be credited against the tax payable in the current taxable year, but the credit limit can be used in the subsequent taxable year for income derived from that country (region). However, it can be deducted from the balance of the credit limit of the income derived from the country (region) in the following tax years. The maximum period for making up the credit shall not exceed five years.
Article 22 A resident individual applying for a credit of the individual income tax paid abroad shall provide the relevant tax payment certificates issued by the tax authorities of the foreign country for the year to which the tax belongs.
Article 23 The interest stipulated in Paragraph 2 of Article 8 of the Individual Income Tax Law shall be calculated in accordance with the RMB lending prime rate announced by the People's Bank of China on the last day of the tax declaration period to which the tax belongs for the same period as the period for making up the tax, and shall be charged on a daily basis from the day following the expiration of the tax declaration period to the day when the deadline for making up the tax expires. If the taxpayer pays the tax before the expiration of the period for paying the tax, the interest shall be charged until the date of paying the tax.
Article 24 The withholding agent shall withhold or withhold taxes in accordance with the provisions of the Individual Income Tax Law when making taxable payments to individuals, and shall pay the taxes on time and make special records for inspection.
The payment referred to in the preceding paragraph, including cash payment, remittance payment, transfer payment and payment in securities, in kind and other forms of payment.
Article 25 The circumstances under which the acquisition of comprehensive income is subject to remittance include:
(1) the acquisition of comprehensive income from two or more places, and the balance of the annual income of the comprehensive income minus special deductions exceeds 60,000 yuan;
(2) the acquisition of remuneration for labor, remuneration for manuscripts, royalties or one or more of the proceeds of the income, and the balance of the annual income of the comprehensive income minus special deductions exceeds 60,000 yuan. less special deductions exceeds 60,000 yuan;
(iii) the amount of prepaid tax in the tax year is less than the amount of tax payable;
(iv) the taxpayer applies for a tax refund.
Taxpayers applying for tax refund should provide their bank accounts opened in China and handle tax refund locally at the place of remittance.
The specific measures for remittance shall be formulated by the competent tax authorities under the State Council.
Article 26 The declaration of full withholding referred to in Article 10(2) of the Individual Income Tax Law means that the withholding agent shall, within the fifteenth day of the month following the month in which the tax is withheld, report to the competent tax authorities the relevant information on all the individuals to whom it has paid the income, the amount of the income paid, the deductions and the amount thereof, the exact amount and total amount of the tax withheld as well as other related tax-related information materials.
Article 27 The specific measures for the places where taxpayers shall file tax returns and other related matters shall be formulated by the competent tax authorities under the State Council.
Article 28 When a resident individual obtains income from wages and salaries, he or she may provide the withholding agent with information about special additional deductions, and the withholding agent shall deduct the special additional deductions when withholding taxes. If a taxpayer obtains wages and salaries from more than two places at the same time and has the special additional deductions deducted by the withholding agent, he or she can only choose to deduct the same special additional deductions from the income obtained from one place in a single tax year.
Resident individuals who receive income from remuneration for labor services, income from manuscripts, and income from royalties shall provide the relevant information to the tax authorities at the time of remittance to reduce the special additional deductions.
Article 29 Taxpayers may entrust withholding agents or other units and individuals to handle the remittance.
Article 30 The withholding agent shall calculate the withholding declaration in accordance with the information provided by the taxpayer, and shall not change the information provided by the taxpayer without authorization.
Taxpayers who find that the personal information provided by the withholding agent or withholding declaration, income, withholding tax, etc. does not correspond to the actual situation, the right to request the withholding agent to modify. If the withholding agent refuses to revise, the taxpayer shall report to the tax authorities, who shall promptly deal with the matter.
Taxpayers and withholding agents shall keep the information related to the special additional deduction in accordance with the regulations. The tax authorities may carry out random checks on the special additional deduction information provided by taxpayers, and the specific measures shall be separately stipulated by the competent tax authorities under the State Council. If the tax authorities find that the taxpayer provides false information, they shall order correction and notify the withholding agent; if the situation is serious, the relevant departments shall deal with it in accordance with the law, and incorporate it into the credit information system and implement joint disciplinary measures.
Article 31 If there is any error in the remittance information provided by a taxpayer when applying for a tax refund, the tax authorities shall inform the taxpayer of the correction; if the taxpayer makes the correction, the tax authorities shall handle the tax refund in a timely manner.
Where the withholding agent fails to release the withheld tax into the treasury, it shall not affect the taxpayer's application for tax refund in accordance with the regulations, and the tax authorities shall handle the tax refund based on the relevant information provided by the taxpayer.
Article 32 If the income is in a currency other than RMB, the taxable income shall be calculated in accordance with the middle price of the RMB exchange rate on the last day of the last month of the month in which the tax return or withholding declaration is made. After the end of the year for the remittance, the income in currencies other than Renminbi, which has been prepaid monthly, quarterly or by times, will not be re-calculated; the portion of the income that should be subject to retroactive payment of taxes will be converted into Renminbi in accordance with the median price of the Renminbi exchange rate of the last day of the last taxable year for the purpose of calculating the amount of taxable income.