what does the tax point mean?
the tax point refers to the starting amount of the initial tax levied by the state on the tax object. If the amount reaches the starting point of collection, it needs to be taxed in full, and if it cannot be reached, it will not be taxed. Starting point taxation refers to the lowest limit of taxation. For example, if the meaning of "no more than" does not exceed this point, then these things will not be taxed. If it exceeds, it will be taxed in full. When the general tax point is %, it is usually when the goods are exported. The tax point for these goods to achieve % is established by the state to support the export of goods. If the goods can be exported in large quantities, it is also beneficial to the national economy, and it can also enhance the influence of the country overseas, which is conducive to the overseas promotion of the country and national culture, and can also increase some fiscal revenue. These tax points in China are not static, but will change and be affected by some factors. When some natural disasters cause huge losses, the tax point will generally drop, which can help people increase their income and play an important role in economic recovery.
Legal Basis
Detailed Rules for the Implementation of the Law of the People's Republic of China on the Administration of Tax Collection Article 47 If a taxpayer is under any of the circumstances listed in Article 35 or Article 37 of the Law on the Administration of Tax Collection, the tax authorities have the right to use any of the following methods to check and verify the tax payable:
(1) Check and verify with reference to the tax burden level of taxpayers with similar business scale and income level in similar local industries;
(2) It shall be verified according to the method of operating income or cost plus reasonable expenses and profits;
(3) Calculate or calculate the raw materials, fuel and power consumed for approval;
(4) It shall be verified by other reasonable methods.
if one of the methods listed in the preceding paragraph is not enough to correctly verify the tax payable, two or more methods can be used at the same time.
if a taxpayer disagrees with the tax payable approved by the tax authorities by the method specified in this article, it shall provide relevant evidence and adjust the tax payable after it is confirmed by the tax authorities.