The company recently donated a batch of its own processed goods through the local government free of charge, what about VAT? How many kinds of donations are there?
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Will corporate donations be exempt from VAT? How many cases are there?
I. General situation
Units or individual industrial and commercial enterprises will give away self-produced, commissioned processing or purchased goods to other units or individuals free of charge, which is regarded as the sale of goods; units or individual industrial and commercial enterprises will provide services to other units or individuals free of charge (except for public welfare undertakings or targeting at the public); units or individuals will transfer intangible assets to other units or individuals free of charge; and units or individuals will transfer intangible assets to other units or individuals free of charge. or individual gratuitous transfer of intangible assets or real estate (for public welfare or the public as the object of the exception), deemed to be the sale of services, intangible assets or real estate.
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II. Tax Exemptions
1. From January 1, 2019, to December 31, 2025, the tax exemptions for self-produced, commissioned processing or purchased goods by units or individual industrial and commercial enterprises will be provided through public welfare social organizations, county-level and above people's governments and their constituent departments, and directly-controlled departments. and above people's governments and their constituent departments and directly subordinate organizations, or units and individuals who directly and gratuitously donate them to targeted poverty-eradication areas, shall be exempted from value-added tax (VAT). Donations of poverty-alleviating goods meeting the above conditions that have already occurred during the period from January 1, 2015 to December 31, 2018 can retroactively implement the above VAT policy.
2. Imported goods and equipment provided by foreign governments and international organizations as gratuitous assistance are exempted from VAT.
3. Donations of charitable materials by overseas donors are exempted from import VAT: materials donated by overseas donors to recipients for free and directly used in charitable undertakings are exempted from import VAT; international and foreign medical institutions engaging in charitable and humanitarian medical aid activities in China are exempted from import VAT on free-use of medical medicines and instruments and consumable medical and sanitary materials used in the course of treatment, cf. the preceding paragraph. Implementation.
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