How To Adjust Income Tax By Financial Funds?

Financial funds refer to the funds of enterprises from all levels of Finance and related departments, including the direct injection of capital into the state treasury, investment subsidy funds, loan interest discount funds, special fund subsidy funds, government lending funds, help seeking losses, loss making up funds and other financial funds.

There are two types of financial subsidy funds received by enterprises: tax revenue and non taxable income.

In the final settlement of the year-end income tax, the tax adjustment of the enterprise's financial funds involves 4 tables, that is, the A105000 table "detailed list of tax adjustment items", the A105020 table, "the detailed list of income tax adjustments not recognized by accrual basis", the A105040 table "the detailed list of tax adjustment for special purpose financial funds" and the A105080 table "capital depreciation, amortization and tax adjustment schedules".

The reason for tax adjustment is mainly due to the difference between the tax law and the accounting standards applied to accounting standards.

The accrual basis is adopted in accounting standards. It is required that the income of each period should be recognized according to the financial subsidy fund to the benefit period of the enterprise, and the tax law stipulates that the receipts and payment system should be adopted, and the income will be recognized according to the actual receipt time of the financial subsidy funds.

When the income recognized by the accounting standards is less than the income recognized according to the tax law, the taxable income should be adjusted when the tax adjustment is adjusted. When the income recognized by the accounting standards is greater than the income recognized according to the tax law, the tax payable should be adjusted to reduce the amount of tax payable.

Required by accounting standards

Through the accounting of deferred income, it will be converted into enterprise income according to the beneficiary period, and the tax law stipulates that the amount of taxable income should be determined at the time of receipt of financial subsidy funds.

At the end of the year tax adjustment, the A105020 form should be filled out, and the amount of the "fiscal load" column in the table should be filled in the amount of financial subsidy that the accounting has been pferred to the current income; the amount of the financial subsidy funds actually received in the year of the "tax law" column shall be filled in. The difference between the two is the tax adjustment number of the subsidy fund, and this tax adjustment number will be automatically generated in the A105000 form.

The reason for non taxable income tax adjustment is that the income is not included.

If the income tax is not collected, the cost of using this fund should not be offset by the amount of taxable income.

When tax adjustment is made, enterprises should adjust and increase the taxable income according to the expenses reflected in the separate account books of the financial subsidy funds.

Non taxable income should meet certain conditions according to the regulations.

According to the regulations of the Ministry of Finance and the State Administration of Taxation on the handling of enterprise income tax on financial capital, there should be 3 conditions for non taxable income: first, enterprises can provide funds for special purpose funds to allocate documents; two, financial departments or other government departments that allocate funds have special funds management methods or specific management requirements for the funds; three, enterprises should separately calculate the funds and expenditures arising from the funds.

At the same time, it also stipulates that the expenses formed by non taxable income shall not be deducted from the taxable income, and the assets formed for expenditures shall be deducted from the taxable income.

It shall not be deducted from the taxable income; if the fiscal fund that meets the requirements is treated as a non taxable income, it shall be included in the total amount of the taxable income that has not been paid in the 5 year (60 months) without any financial or other appropriations, and the amount of the fiscal revenue that is included in the total amount of the taxable income shall be deducted from the calculation of the taxable income amount in the sixth years.

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