1. Calculation of the current period of deductible inputs and credits
(1) When the current period of deductible inputs based on deductible inputs and credits:
Borrowing: Fixed Assets, Raw Materials, Expenses, etc.
Taxes Payable - VAT Payable Input tax
Taxes payable - VAT payable - to be credited with input additions
Credit: bank deposits
(2) When non-deductible input tax occurs at the end of the period to transfer out the inputs:
Borrow: costs, expenses and other accounts
Credit: Taxes payable - VAT payable - input tax transferred out
Taxes payable - VAT payable - input additions to be offset
2. When input additions are offset against tax payable during the period
Borrow: Taxes payable - VAT payable - input additions
To be offset against tax payable. Taxes - VAT payable - input plus credit
Credit: Taxes payable - VAT payable - input plus credit to be offset
3. If there is still a balance of input plus credit at the expiration of the preference
Debit: Cost of main operations
Credit: VAT payable - input plus credit to be offset
Credit: VAT payable - VAT payable - input plus credit to be offset
3: Main business costs
Credit: Taxes payable - payable VAT - to be offset by input credits
Misconceptions about the practical operation of pre-tax deduction of R & D expenses
Misconceptions 1: the year did not enjoy the timely deduction of R & D expenses tax concessions will not be able to enjoy
Cai Shui [2015] No. 119 document stipulates that the tax concessions are not to be enjoyed in the future. 2015] No. 119 document provides that the enterprise meets the conditions of this notice of the R & D expenses plus deduction and after January 1, 2016 did not enjoy the tax concessions in a timely manner, you can retroactively enjoy and fulfill the filing procedures, the retroactive period of up to three years.
Therefore, those who have not timely enjoyed the tax incentives after January 1, 2016 can retroactively enjoy and fulfill the filing procedures, and the retroactive period is up to 3 years.
Misconception 2: Only the wages and salaries of personnel directly engaged in R&D activities can be added and deducted
Cai Shui [2015] No. 119 stipulates that the wages and salaries of personnel directly engaged in R&D activities, the basic old-age insurance premiums, the basic medical insurance premiums, the unemployment insurance premiums, the work-related injury insurance premiums, the maternity insurance premiums, and the housing provident fund, as well as the labor costs of external R&D personnel, belong to the scope of R&D expenses allowed to be The scope of the R&D expenses that are allowed to be deducted.
Therefore, not only the salaries and wages of the personnel directly engaged in R&D activities are allowed to be deducted according to the R&D expenses, but also the basic pension insurance premiums, basic medical insurance premiums, unemployment insurance premiums, labor injury insurance premiums, maternity insurance premiums and housing provident fund are also allowed to be deducted according to the R&D expenses.
Misconception 3: directly related to R & D activities, travel expenses, conference fees can not be deducted
Cai Shui [2015] No. 119 provides that no more than 10% of the total amount of deductible R & D costs and R & D activities directly related to other costs are allowed to be deducted in accordance with the R & D costs, such as technical books and materials, information and translation costs, expert consulting fees, high-tech R & D insurance premiums, R & D results of the search, analysis, evaluation, demonstration, identification, assessment, evaluation, acceptance costs, intellectual property rights application fees, registration fees, agency fees, travel expenses, meeting expenses, etc.. Therefore, travel and meeting expenses directly related to R&D activities are allowed to be deducted in accordance with the R&D expenses within the prescribed standard (not exceeding 10% of the total R&D expenses that can be added and deducted).
Misconception 4: The base for calculating the deduction limit of other expenses directly related to R&D activities does not include other expenses
Cai Shui [2015] No. 119 provides that no more than 10% of the total amount of R&D expenses can be deducted directly related to R&D activities are allowed to deduct R&D expenses.
Therefore, the deduction limit for other costs directly related to R&D activities is 10% of the "total deductible R&D costs", and the "total deductible R&D costs" should include "other costs directly related to R&D activities". The "total deductible R&D expenses" should include "other expenses directly related to R&D activities", and it should be reminded that the "other expenses directly related to R&D activities" in the "total deductible R&D expenses" is also within the standard, which is not the same as the actual incurred expenses.
Myth 5: Enjoy accelerated depreciation policy can not enjoy the R & D costs plus deduction concessions
Cai Shui [2015] No. 119 document, used for R & D activities of the instrument, equipment, depreciation is allowed to be in accordance with the R & D costs plus deduction.
Enterprises that have enjoyed the accelerated depreciation policy for instruments and equipment used for R&D activities shall, when enjoying the additional deduction for R&D expenses, make additional deductions for the amounts of depreciation and expenses that have been accounted for in accordance with the relevant documents on the additional deduction for R&D expenses.
Thus, for enterprises carrying out R&D activities, it means that the depreciation and expenses that have been treated with accelerated depreciation in accounting according to the announcement can still be deducted if they meet the conditions for additional deduction and enjoy double benefits.
Myth 6: Only high-tech enterprises can enjoy the additional deduction of research and development expenses
According to the provisions of the Enterprise Income Tax Law and its implementing regulations, the enterprise's expenditure on research and development costs for the development of new technologies, new products, and new processes can be added to the calculation of taxable income. The other Cai Shui [2015] No. 119 document stipulates that it applies to resident enterprises that have sound accounting, implement the checking of accounts and are able to accurately attribute R&D expenses.
Consolidating the above provisions, the provisions of the Enterprise Income Tax Law and its implementing regulations of the relevant documents do not limit only high-tech enterprises can enjoy, but only limited to "apply to the accounting is sound, the implementation of the checking of accounts levy and the ability to accurately attribute research and development costs of the residents of the enterprise", that is, the non-high-tech enterprises can enjoy the The company's R&D expenses are not deductible.
Myth 7: Small and micro enterprises can't enjoy the preferential policies on the deduction of research and development expenses at the same time
The document Cai Shui [2015] No. 119 stipulates that this method is applicable to resident enterprises with sound financial accounting and accurate collection of research and development expenses. In addition, Article 2 of the Circular of the Ministry of Finance and the State Administration of Taxation on Several Issues Concerning the Implementation of Preferential Policies on Enterprise Income Tax (Cai Shui [2009] No. 69) stipulates that all tax preferences stipulated in the Enterprise Income Tax Law and its implementing regulations can be enjoyed at the same time by any enterprise that meets the prescribed conditions.
Therefore, the tax incentives stipulated in the Enterprise Income Tax Law and its implementing regulations can be enjoyed at the same time by any enterprise that meets the prescribed conditions, instantly, if the enterprise has already enjoyed the preferential policies for small micro-profit enterprises to reduce their taxable income by half and levy tax at a rate of 20% or half of the tax rate, and it can also enjoy the preferential policies for the deduction of research and development expenses at the same time.
Myth 8: non-taxable income formed by the costs can be deducted
Cai Shui [2011] No. 70 document provides: non-taxable income for the expenditure of the formation of the costs, shall not be deducted in the calculation of taxable income; used for the expenditure of the formation of the assets, the calculation of depreciation, amortization shall not be deducted in the calculation of taxable income.
Another enterprise will meet the conditions stipulated in Article 1 of this Circular after the financial funds for non-taxable income treatment, within five years (60 months) without incurring expenditures and have not been paid back to the financial department or other government departments that allocated the funds, shall be included in the total taxable income in the sixth year of obtaining the funds; the expenditures incurred by the financial funds that are included in the total taxable income are permitted to be deducted in the calculation of the taxable income. deduction."
According to the provisions of the above document, if the enterprise will not incur expenditures within five years and not paid back to the financial department or other government departments that allocated the funds to be counted as part of the total income, the research and development expenses incurred by fiscal funds counted as part of the total taxable income can be added and deducted in accordance with the relevant provisions of Article 95 of the Implementing Regulations, in addition to the above, the enterprise's other cases of non-taxable income used for the research and development of new products Can not enjoy the tax benefits of additional deduction.
What needs to be reminded is that, taking into account the non-taxable income formed by the expenses can be deducted, enterprises must do a good job in the practical operation of whether the income is "non-taxable income" choice. Such as: eligible software enterprises received VAT that is refunded as non-taxable income accounting, the corresponding non-taxable income for the expenditure of the formation of the cost, as non-taxable income conditions are "by the enterprise dedicated to the research and development of software products and the expansion of reproduction and separate accounting," the enterprise may be "Non-taxable income for expenditure" can apply for research and development costs plus deduction preferential policies, and non-taxable income for expenditure can not be deducted before tax, is not allowed to be included in the research and development costs plus deduction, that is, the enterprise enjoys the VAT on software products that is the tax refund policy, used for the research and development of software products, can not enjoy the plus deduction policy. Deduction policy. If the enterprise enjoys the additional deduction policy, compared with the "VAT refund as non-taxable income accounting" is more "affordable".
Myth 9: Welfare subsidies for personnel engaged in research and development activities can be deducted
Cai Shui [2015] No. 119 provides that the wages and salaries of personnel directly engaged in research and development activities, basic old-age insurance premiums, basic medical insurance premiums, unemployment insurance premiums, industrial injury insurance premiums, maternity insurance premiums, and housing provident fund, as well as the cost of labor of external research and development personnel. The R&D expenses that are allowed to be added and deducted.
State Administration of Taxation Announcement No. 34 of 2015 stipulates that welfare subsidies included in an enterprise's employee wage and salary system and fixedly paid together with wages and salaries, in line with the provisions of Article 1 of the Circular of the State Administration of Taxation on the Deduction of Enterprises' Wages, Salaries and Employee Welfare Fees (Guo Shui Han [2009] No. 3), can be treated as wage and salary expenditures incurred by an enterprise and deducted according to the provisions in the pre-tax deduction.
According to the provisions of the above document, the welfare subsidies of the personnel directly engaged in R&D activities which are included in the wage and salary system of the employees of the enterprise and are fixed and paid together with the wages and salaries can be deducted as the wage and salary expenditures incurred by the enterprise and deducted before the tax according to the regulations, and also allowed to deduct the research and development expenses last night.
VAT input tax plus deduction of the account handling how to do? One of the input tax, to be offset by the input addition and so on is the need for the accountant to calculate, calculate the correct amount is very important, if wrong, then the VAT accounts may be all wrong, resulting in a variety of trouble.